“Index funds represent almost 41% of assets in the list, a 6% rise since last year,” Brightscope found. While index fund investing, ideally, should be more than 80% of 401(k) assets, this is an encouraging number. The lower the “expense ratio” or annual management fee on the funds within your 401(k), the more you can save. Remember that management expenses come directly out of your kitty. Focus on improving the plan you have. But the key to making it work is to save as much as you can every year — at least 15% of your salary.

Key Takeaways:

• Every year, the research firm Brightscope rates the best 401(k) plans. It searches far and wide and scans the filings of thousands of companies.
• If your 401(k) doesn’t have a full array of the lowest-cost index funds, ask for them.
• The best plans put some money on the table in the form of matching contributions, which average $13,000 per worker in the Brightscope survey.

“Funds that cover global stocks, bonds and cash should be staples.”

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