“It’s a little like squeezing a balloon,” Bremen said. “As record-keeping fees come down, you see managed-account fees, loan fees, brokerages fees go up. It’s a little bit of a game.”
Managed accounts, which offer a more personalized investment strategy than you see in, say, a target-date fund, for a higher fee, are offered by 28 percent of the plans surveyed, up from 16 percent in 2013. But since the usual behavior by plan participants is inertia, “so far they haven’t proved to be a magic bullet,” Bremen said.
This article was provided by Bloomberg News.