Little surprise, bean counters have the best 401(k) plans. Judy Diamond Associates is out with its third annual 401(k) Plan Benchmark Report, which lists the top industries leading the pack.
The division of ALM Intelligence examined approximately 500,000 active 401(k) plans with at least $3,000 in plan assets. It found the following:
- Certified public accountants
- Financial advisory
- Legal
- Dental
- Insurance providers/brokers
- Physicians
- Engineering
- Financial and insurance services (all others)
- Consultants
- Mining and utilities
The data comes from the 2016 plan year, ALM says, the most recent reported, “and reviews of 27 distinct industries covering about 77 million eligible workers, of whom 56 million are actively participating.”
It analyzed seven metrics to arrive at the rankings, including average account balance, participation rates and the rates of return. Most-improved ratings analyzed average account balances, participation rates, and employer/employee contributions.
Highlights from the 2018 report include:
- Overall participation rates ticked up from 72 percent in 2015 to 73 percent in 2016;
- There was an 18 percent increase in plans offering automatic enrollment, which is now offered by 8.4 percent of all 401k plans, up from 7.1 percent in 2015;
- The five industry groups with the most improved 401k plans were: Construction, Mining/Utilities, Media, Banking, and Engineering.
The value of all 401(k) accounts in 2016 grew by about $400 billion, to a record $4.5 trillion in plan assets.
“This year’s benchmark report offers something for everyone,” Eric Ryles, Vice President of Customer Solutions at ALM Intelligence, said in a statement. “Financial advisors can benchmark their clients, and those clients can now benchmark themselves. By making this report available to the HR community, we’re empowering those responsible for the financial well-being of their employees to have access to an objective measurement of plan performance.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
Not sure why airlines (pilots) are not on the list – most of us have a 16% company contribution in addition to the employee’s which enable most to reach the 415(c) limits yearly…