Retirement Industry Disruptor Report™
Breaking the Budget for SMBs: Human Interest Research Shows The Impact of Retirement Plan Transaction Fees
Small and mid-size businesses (SMBs) run on tight margins—so keeping costs predictable is crucial. Unfortunately, when it comes to retirement plans, new research shows that extra costs, like transaction fees, are breaking benefits budgets for SMB employers. Human Interest surveyed 500 benefits decision makers at SMBs for National Small Business Week to understand the consequences of unexpected retirement plan costs, including transaction fees.
Key takeaways:
6 in 10 SMB employers report paying fees they didn’t anticipate when they signed up for a plan - including charges for audits, ERISA counsel, and compliance filings.
73% reported that these fees drove up the overall cost of their benefits program.
As a consequence of extra costs, employers terminated their plan (13%), lowered matching contributions (26%), or cut benefits to compensate (31%).
64% said participants withdrew from the plan because they found transaction fees unaffordable, unexpected, or confusing.
To learn more about the research, download the infographic.
Survey Methodology:
The study conducted by Talker Research surveyed 500 US-based benefits decision-makers at small businesses offering a 401(k) or PEP between March 3 and March 12, 2026, using a random double-opt-in methodology. Respondents had owner, partner, C-suite, or senior management titles and were responsible for managing, administering, evaluating, or selecting retirement benefits at their small business (fewer than 1,000 employees). Survey takers were non-Human Interest customers, participated anonymously, and were invited to take the survey by Talker.
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