Big ‘Best Practice’ Story of 2019—Top Ranked 401k Plans

401k, plans, match, top
Who’s the best and why?

Who’s doing it right? MONEY’s rankings of “401k superstars”—companies that offer workers top-rated plans in various industries—caught our eye, and our readers’ attention.

MONEY identified what it said are the most generous plans across 14 different industries using data from the Bureau of Labor Statistics and investment research firm BrightScope that focused on bigger plans with $100 million or more in assets.

Low fees and a good employer match are keys to a high-quality plan, MONEY said, and although Brightscope didn’t break out fees or the company match, MONEY said it’s likely the top-rated companies are competitive in these areas and noted the average employer match now sits at 4.7%, citing Fidelity’s research.

Here are the companies that were deemed leaders in their industries (listed alphabetically by industry), according to MONEY’s analysis of 401k plans:

Accommodation and Food Services

  • Chick-fil-A
  • Average 401k balance: $158,188
  • Industry average 401k balance: $47,788

Airlines

  • United Airlines
  • Average 401k balance: $641,218
  • Industry average 401k balance: $190,092

Business and Finance

  • Lone Pine Capital
  • Average 401k balance: $1,037,787
  • Industry average 401k balance: $148,684

Educational Services

  • California Teachers Association
  • Average 401k balance: $239,091
  • Industry average 401k balance: $93,636

Health Care and Social Assistance

  • Sutter Medical Group
  • Average 401k balance: $497,124
  • Industry average 401k balance: $114,168

Information

  • SES Americom
  • Average 401k balance: $290,142
  • Industry average 401k balance: $106,066

Law

  • Simpson, Thacher & Bartlett
  • Average 401k balance: $667,815
  • Industry average 401k balance: $314,958

Management of Companies and Enterprises

  • BHP USA
  • Average 401k balance: $255,240
  • Industry average 401k balance: $141,463

Manufacturing

  • Takeda Pharmaceuticals U.S.A.
    • Average 401k balance: $229,297
    • Industry average 401k balance: $134,895

Mining, Quarrying, and Oil and Gas Extraction

  • CNX Resources
  • Average 401k balance: $177,565
  • Industry average 401k balance: $138,278

Professional, Scientific and Technical Services

  • Zeta Associates
  • Average 401k balance: $589,469
  • Industry average 401k balance: $137,698

Retail Trade

  • SAP America
  • Average 401k balance: $211,199
  • Industry average 401k balance: $56,758

Technology

  • The Valve Corporation
  • Average 401k balance: $249,261
  • Industry average 401k balance: $123,271

Utilities

  • Oglethorpe Power
  • Average 401k balance: $367,770
  • Industry average 401k balance: $201,211

The MONEY rankings also display the number of extra years a plan participant would need to work at a company with an average plan to end up with the same amount of retirement savings that the top plan in that industry would provide, and the average dollars lost by average plans compared to the top-ranked plan.

The math is based on a hypothetical, average 401k participant earning an income of $44,000 a year with a starting account balance of $40,000, and forecasts how quickly each plan gets this participant to retirement.

Kudos to secretive Greenwich, Conn.-based hedge fund firm Lone Pine Capital in the “Business and Finance” category, with the highest (by far) average 401k account balance for plan participants of a whopping $1,037,787—nearly seven times the average “Business and Finance” industry average 401k account balance of $148,684.

Brian Anderson Editor
Editor-in-Chief at  | banderson@401kspecialist.com | + posts

Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.

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