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

Airlines

Business and Finance

Educational Services

Health Care and Social Assistance

Information

Law

Management of Companies and Enterprises

Manufacturing

Mining, Quarrying, and Oil and Gas Extraction

Professional, Scientific and Technical Services

Retail Trade

Technology

Utilities

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.

Exit mobile version