CPAs, Doctors, and Lawyers top the list of Best 401(k) Plans

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Apr 11, 2024, 09:00 ET

Educational Services, Social Assistance, and Food Services are among the worst-performing sectors

NEW YORK, April 11, 2024 /PRNewswire/ -- Judy Diamond Associates, a unit of ALM Global, LLC has published the results of its eighth annual 401(k) Plan Benchmark Report. This report provides an in-depth look at 27 different industrial groupings across eight company sizes. Over 600,000 active 401(k) plans with $6.4 trillion in assets covering 68 million workers were analyzed to create this unique and comprehensive look at America's primary retirement vehicle.

The complete 401(k) Plan Benchmark Report, sponsored by Mutual of America Financial Group, can be downloaded at www.judydiamond.com/.

The following industries received top marks:

Certified Public Accountants
Doctors
Lawyers
Dentists
Banking

Year over year, total 401(k) assets decreased by $1.6 trillion dollars to $6.4 trillion, driven by low stock market returns during the 2022 plan year. The average account balance fell from $128,000 to $101,000, due largely to an 18% decline in the S&P.

"Establishing quantitative, data-driven benchmarks is so important for our industry," says study author Eric Ryles, Vice President of Customer Solutions at Judy Diamond Associates. "Only by knowing what the average plan looks like can employers and their 401(k) advisors make successful plans to increase retirement readiness for all participants. You can't chart a course to the future without a good understanding of where you're starting from."

"While Americans are generally confident they'll have enough money to live comfortably in retirement, the reality is that personal saving rates are declining, making it even more critical for individuals to have access to a retirement plan," said Brian Severin, Senior Executive Vice President and CMO at Mutual of America Financial Group. "Mutual of America is dedicated to advancing retirement education and promoting the importance of building and preserving assets for a financially secure future. This report, with its focus on key participation trends and benchmarks for retirement plans across various industries, offers key insights for businesses seeking to provide an effective plan that helps their employees save and build an even stronger foundation for a better retirement outcome."

About ALM | Judy Diamond Associates
Judy Diamond Associates is a unit of ALM Global, LLC, a trusted media, information and intelligence company supporting both the practice of and business of professionals in the legal, insurance, commercial real estate and financial services industries. Judy Diamond Associates is the premier provider of sales, prospecting, and plan analysis tools for the benefits brokers, financial advisors, plan providers, and carriers serving the employee benefits and retirement markets. The comprehensive and current data offers instant access to 5500 plan data and a broad suite of analytical tools to support lead generation, relationship building, market research, and plan analysis needs. Judy Diamond Associates' business is built on a commitment to superb customer service and data integrity. Visit www.judydiamond.com for more information.

About Mutual of America Financial Group
Mutual of America Financial Group is the trade name used by Mutual of America, a leading provider of retirement services and investments to employers, employees and individuals. We provide high-quality, innovative products and services at a competitive price, along with outstanding personalized service, to help our customers build and preserve assets for a financially secure future. Our mission is built upon our values—integrity, prudence, reliability, excellence and social responsibility—which have guided us since 1945 and continue to serve us and our customers well. For more information, visit mutualofamerica.com, and connect with us via Facebook and LinkedIn.

CONTACT: Lynn Kruetzkamp
[email protected]

SOURCE ALM