What If Everyone Followed This One Piece of Retirement Plan Advice?

Every so often, I come across an idea that’s so simple, so practical, and so obviously beneficial, I find myself wondering why it hasn’t already transformed the industry. One of those ideas is this: employers should pay retirement plan fees instead of pulling them from participant accounts.

This isn’t just a theory I toss around. It’s a move that could collectively save participants millions, make retirement plans more competitive, and even lower costs for business owners. And the best part? It doesn’t require any new laws. Just better awareness.

I’ve been advocating for this shift for years, because I truly believe if enough employers got on board, the retirement industry would be forced to become more transparent, more efficient, and more focused on results. Here’s why I feel so strongly about it.

Market Forces Could Do the Job Congress Hasn’t

One of the biggest reasons retirement plan fees remain high is that most people — including many business owners — don’t realize what they’re actually paying. Participants rarely know fees exist, let alone how much they’re losing to them. And many employers don’t know what to look for when choosing a plan or advisor. That lack of scrutiny creates a perfect environment for vendors to overcharge or bury fees in fine print.

But it doesn’t have to be this way. When plan sponsors start benchmarking fees, questioning revenue-sharing arrangements, and switching to flat-fee advisors and transparent recordkeepers, it puts real pressure on the system. Vendors who rely on outdated pricing models or hidden costs either have to adapt or lose business.

This shift doesn’t require new regulations — just more education. Once employers know there are better, more efficient ways to manage their plan, they usually act. My job is to help them see it.

Shifting Fees to the Employer Level Just Makes Financial Sense

Here’s where it gets especially compelling for small and midsize business owners: In many cases, the owners and executives have the largest balances in their company’s retirement plan. So when fees come out of participant accounts, they’re personally footing most of the bill — with no tax benefit.

But if the business pays those same fees directly, they become a deductible expense. That means lower personal costs for the owner, reduced fees across the board, and participant accounts that can grow without interruption inside a tax-advantaged environment. It’s better for growth, better for retention, and better for long-term outcomes.

It’s one of those rare decisions where everyone wins — just by changing and understanding who pays.  And even if employers prefer having participants pay, they can at least use what they have learned from my writing to ensure that participant fees remain reasonable.

The Real Bottleneck? Awareness

Everything I’ve described here is already possible under current law. But too many employers still assume that high fees are just part of the deal. Or they’ve been sold overpriced products by vendors with no fiduciary responsibility.

That’s what I’m trying to change. I’m not asking for sweeping regulatory reforms — I’m pointing out that the system can work, if people understand how to use it.

And I’m not alone. The more advisors, business owners, and professionals I talk to, the more I see the narrative shifting. Transparency, flat fees, and fiduciary responsibility are gaining ground.

My hope is that by continuing to share this message, we’ll eventually hit a tipping point — where transparent plans are the norm, not the exception.