San Diego based BrightScope, recently launched to help people navigate their 401k retirement plans and how to maximize the benefits. Today, the startup is launching its Personal 401k Fee Report that will let participants can figure out exactly how much they are paying in fees in their specific plan.
Drawing from a database of more than 30,000 401k plans, BrightScope helps users get a clear picture of the breakdown of their contributions to their plans, including information on the amount of fees users are paying to providers. The company has also raised a $2 million second round of financing, led by Steelpoint Capital Partners, to continue to build out the service.
BrightScope’s service is needed to help 401k participants gain visibility into the their financial plans.The startup claims that 30% of workers don’t participate at all in their company 401k programs, 22% don’t contribute enough to maximize matching benefits from companies, and 80% of workers have no idea how much they’re paying in 401k administrative and other fees. BrightScope’s 401k fee report is one of the first tools to be rolled out to users; more products are in the pipeline.