PensionBee research says “zero-fee” IRAs can carry hidden costs of about 1.3%, or roughly $1,400 a year

• PensionBee analysis found “zero-fee” IRAs can impose hidden costs of 0.16%-0.32% annually on a $107,000 balance.
• Under typical saver behavior, the hidden cost estimate rises to about 1.3%, or roughly $1,400 a year.
• Key revenue sources cited include cash-sweep spreads, securities lending, payment for order flow, fund expense ratios, service charges, fine print.
• The report flagged fund selection as the largest driver, with active-versus-index fees potentially costing more than $170,000 over 30 years.
• Polling cited showed two-thirds of Americans lack confidence in IRA knowledge, while IRA assets were cited at $18 trillion in 2026.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Pensionbee Group plc published the original content used to generate this news brief via GlobeNewswire (Ref. ID: 202608120800PRIMZONEFULLFEED9808588) on August 12, 2026, and is solely responsible for the information contained therein.