These Industries Have the Best 401(k) Plans
NEW YORK (MainStreet) If you work in the hospitality industry, chances are your employer-sponsored 401(k) plan is an underachiever. The legal industry is on the other end of the scale, with the best retirement plans of any industry, as scored by BrightScope, an investment research company.
Obtaining data directly from plan sponsors and record keepers, combined with publicly available sources such as the Department of Labor and the Securities and Exchange Commission, the company has graded plans with more than $100 million in assets on some 200 data points, including fees, investment choices, company match, participation rates and account balances. The list reveals the industries with the strongest retirement plans in the nation.
"The range of industries topping this list shows that employers of all types are taking necessary steps to set up employees for a secure retirement by providing a robust 401k plan," said Brooks Herman, Head of Data and Research for BrightScope. "We hope companies across the country are now inspired to evaluate the options available to workers and make positive changes that have the potential to make a huge impact to employees' financial future over time."
Top industries with the highest ranked 401(k) plans:
Industry Number of Plans Evaluated Rating (scale of 100)
- 1. Law 179 plans 82.75
- 2. Utilities 114 plans 77.32
- 3. Mining, Quarrying, and Oil and Gas Extraction 61 plans 77.10
- 4. Technology 205 plans 75.335.
- 5. Airlines 55 plans 74.65
- 6. Professional, Scientific, and Technical Services 191 plans 74.33
- 7. Business and Finance 416 plans 73.58
- 8. Manufacturing 1015 plans 72.54
- 9. Automotive 27 plans 69.93
- 10. Wholesale Trade 143 plans 69.26
- 11. Information 73 plans 69.17
- 12. Management of Companies and Enterprises 125 plans 68.51
- 13. Arts & Entertainment 22 plans 67.68
- 14. Health & Medicine 238 plans 66.98
- 15. Other Services 43 plans 66.20
- 16. Transportation and Warehousing 74 plans 65.78
- 17. Construction 169 plans 65.72
- 18. Real Estate and Rental and Leasing 33 plans 65.66
- 19. Education 30 plans 65.64
- 20. Administrative and Support and Waste Management and Remediation Services 46 plans 63.83
- 21. Agriculture, Forestry, Fishing and Hunting 11 plans 57.50
- 22. Retail Trade 164 plans 57.06
- 23. Hotels, Casinos, and Food Services 35 plans 54.38
The ratings were developed in partnership with independent 401(k) fiduciaries, reviewing more than 200 unique data inputs per plan and calculating a single numerical score which defines plan quality at the company level.
--Written by Hal M. Bundrick for MainStreet