These Companies Have the Best 401(k) Plans, According to an Analysis of 14 Major Industries
All 401(k)s are not created equal. Retirement plans vary, and the design of your particular plan can have a big impact on your future financial security.
Here at Money, we wanted to find the 401(k) superstars, those companies that are offering their workers top-rated plans. So we gathered the best plans across various industries, including some of the fastest-growing categories as defined by the Bureau of Labor Statistics. We used data from investment research firm BrightScope that focused on bigger plans with $100 million or more in assets.
"A good 401(k) plan shows that the employer is invested in its employees," says Gregg Levinson, senior director, retirement at Willis Tower Watson, a risk management firm.
What makes a high-quality plan? Low fees, of course. And a good company match. While BrightScope doesn't break out fees or the company match (the percentage of your income that your employer contributes to your account, provided you contribute the same), it's likely their top-rated companies are competitive in these areas. The average employer match is 4.7%, according to Fidelity.
BrightScope also calculates the number of extra years you would need to work at a job with an average plan to end up with the same amount of retirement savings that the top plan in your industry would afford you. Their math is based on a hypothetical, average 401(k) participant earning an income of $44,000 a year with a starting account balance of $40,000, and they forecast how quickly each plan gets this participant to retirement.
The upshot? The difference between a high-quality 401(k) plan and a low-quality one can add up to tens of thousands of dollars over the course of your career. When you get a job offer, ask about the company's retirement plan. If there's no match or a low match, consider asking for a higher salary to compensate, career experts advise.
Here are the top 401(k) plans across various industries -- including some, like health care and technology, that have above-average job growth. Industries listed in alphabetical order:
1. Accommodation and Food Services
Winner: Chick-fil-A
Winner average account balance: $158,188
Industry average account balance: $47,788
Additional years needed to work if you only have an average plan: 11 years
Average dollars lost by average plans to winning plan: $142, 414
2. Airlines
Winner: United Airlines
Winner average account balance: $641, 218
Industry average account balance: $190,092
Additional years needed to work if you only have an average plan: 11 years
Average dollars lost by average plans to winning plan: $123,474
3. Business and Finance
Winner: Lone Pine Capital
Winner average account balance: $1,037,787
Industry average account balance: $148,684
Additional years needed to work if you only have an average plan: 12 years
Average dollars lost by average plans to winning plan: $43,964
4. Educational Services
Winner: California Teachers Association
Winner average account balance: $239,091
Industry average account balance: $93,636
Additional years needed to work if you only have an average plan: 9 years
Average dollars lost by average plans to winning plan: $128,114
5. Health Care and Social Assistance
Winner: Sutter Medical Group
Winner average account balance: $497, 124
Industry average account balance: $114,168
Additional years needed to work if you only have an average plan: 14 years
Average dollars lost by average plans to winning plan: $105,613
6. Information
Winner: SES Americom
Winner average account balance: $290,142
Industry average account balance: $106,066
Additional years needed to work if you only have an average plan: 9 years
Average dollars lost by average plans to winning plan: $76,686
7. Law
Winner: Simpson, Thacher & Bartlett
Winner average account balance: $667,815
Industry average account balance: $314,958
Additional years needed to work if you only have an average plan: 6 years
Average dollars lost by average plans to winning plan: $25,372
8. Management of Companies and Enterprises
Industry average account balance: $141,463
Winner: BHP USA
Winner average account balance: $255,240
Additional years needed to work if you only have an average plan: 11 years
Average dollars lost by average plans to winning plan: $95,371
9. Manufacturing
Winner: Takeda Pharmaceuticals U.S.A.
Winner average account balance: $229,297
Industry average account balance: $134, 895
Additional years needed to work if you only have an average plan: 11 years
Average dollars lost by average plans to winning plan: $107,800
10. Mining, Quarrying, and Oil and Gas Extraction
Winner: CNX Resources
Winner average account balance: $177, 565
Industry average account balance: $138,278
Additional years needed to work if you only have an average plan: 9 years
Average dollars lost by average plans to winning plan: $68,111
11. Professional, Scientific and Technical Services
Winner: Zeta Associates
Winner average account balance: $589,469
Industry average account balance: $137, 698
Additional years needed to work if you only have an average plan: 12 years
Average dollars lost by average plans to winning plan: $72,005
12. Retail Trade
Winner: SAP America
Winner average account balance: $211,199
Industry average account balance: $56,758
Additional years needed to work if you only have an average plan: 11 years
Average dollars lost by average plans to winning plan: $183,772
13. Technology
Winner: The Valve Corporation
Winner average account balance: $249,261
Industry average account balance: $123,271
Additional years needed to work if you only have an average plan: 9 years
Average dollars lost by average plans to winning plan: $122,324
14. Utilities
Winner: Oglethorpe Power
Winner average account balance: $367, 770
Industry average account balance: $201, 211
Additional years needed to work if you only have an average plan: 6 years
Average dollars lost by average plans to winning plan: $28, 211