Cut 401(k) Costs Without Cutting Quality

Many small businesses overpay for retirement plans. Learn how pooled employer plans (PEPs) help lower costs while improving employee benefits.

Why 401(k) Costs Matter

When employers consider offering or upgrading a retirement plan, cost is usually top of mind. For small and mid-sized businesses, 401(k) fees often feel overwhelming — but new solutions are emerging that allow companies to cut costs without reducing quality.

One of the most effective is the Pooled Employer Plan (PEP), which lets multiple employers join together in a larger structure, creating scale that reduces expenses and improves efficiency.

The Biggest Drivers of 401(k) Costs

The main contributors to high plan expenses include:

Recordkeeping and administration fees
Investment expense ratios
Fiduciary and advisory services
Compliance requirements (such as annual audits)

Smaller businesses often face a “small plan premium,” paying disproportionately higher fees than large employers. On top of that, hidden investment costs and duplicated administrative services further inflate expenses.

How PEPs Help Lower Costs

By joining a PEP, employers can:

Leverage pooled scale to negotiate lower recordkeeping and investment fees.
Gain access to institutional share classes that were once out of reach.
Replace high-cost funds with low-cost index funds for long-term employee savings.
Rely on the Pooled Plan Provider’s fiduciary oversight, which reduces liability.
Streamline administration with modern payroll integration and compliance tools, cutting errors and the need for expensive outside consultants.

Why Lower Fees Matter for Employees

Lowering fees isn’t just about saving money for the company — it directly impacts employee retirement readiness.

Even a 1% annual reduction in fees can add up to thousands of dollars more in an employee’s account over the course of a career.

For employers, providing a cost-effective retirement plan is also a powerful recruiting and retention tool.

Apex Consulting’s PEP Solution

At Apex Consulting, we design PEP solutions that maximize value while minimizing cost.

Through:

Ameritas as recordkeeper
Schwab as custodian
Our fiduciary oversight

…we deliver transparent pricing, institutional investment access, and simplified plan management.

Employers get more value at a fraction of the traditional cost — and employees gain a stronger path to financial security.