Vanguard vs Fidelity

Comparison Details

Vanguard vs Fidelity retirement plan administrator comparison Vanguard and Fidelity are two of the most recognized names in workplace retirement, but they differ in how they position their administration and recordkeeping services, the types of plans they commonly support, and how transparently pricing is presented. If you’re evaluating a provider for a new plan or considering a conversion, the best choice usually comes down to your plan type, desired investment lineup, and the level of sponsor support you expect. At-a-glance: provider profile and scale Vanguard (founded 1975; ~20,000 employees) is known for a low-cost, client-owned structure and an institutional focus. Our data shows ~1,400 401(k) clients with ~4.8M participants and ~$2.55T AUM (2024) across its reported book. Fidelity (~50,000 employees; HQ Boston, MA) is a multinational financial services company with broad workplace capabilities. Our data shows significant presence in 403(b) and defined benefit markets (2025), including ~7,946 403(b) clients and ~4.6M participants , plus ~4.88M defined benefit participants . Plan types supported: where each provider tends to fit best Vanguard supports 401(k) and SEP IRA arrangements in this dataset, aligning well with many corporate and small-business retirement needs where a straightforward defined contribution plan is the priority. Fidelity supports a wider set of plan types here— 401(k), 403(b), and defined benefit —which can be especially relevant for nonprofits, education, healthcare systems, and employers that need both DC and DB capabilities under one umbrella. Core services: recordkeeping vs broader administration Vanguard services: recordkeeping, compliance support, and plan design. This can be attractive to sponsors who want help with plan architecture (e.g., eligibility, match structure, automatic features) alongside day-to-day administration. Fidelity services: recordkeeping (as listed). Fidelity is widely used as a recordkeeper, and many sponsors pair recordkeeping with additional partner services depending on plan complexity. Investments and philosophy: low-cost lineup vs broad platform Vanguard’s brand is tightly connected to low-cost indexing and a client-owned model. For sponsors prioritizing a cost-sensitive lineup with access to Vanguard mutual funds and ETFs, this philosophy can be a deciding factor. Fidelity typically appeals to sponsors seeking a large, flexible investment platform and broad participant-facing capabilities. If your committee values wide manager choice or already uses Fidelity for other workplace benefits, operational alignment may be a plus. Pricing transparency: published example vs request-based Pricing often depends on plan size, services, and share class access, but the way pricing is presented can still matter during evaluation: Fidelity includes an example product price in our dataset: Fidelity Advantage 401(k) with a $500 setup fee , $100 base fee , and $8.33 per employee fee . This can help smaller employers estimate baseline costs more quickly (final pricing may still vary by requirements). Vanguard does not list pricing in the provided data, which is common for institutional offerings where fees are often quoted based on plan demographics, service scope, and investment lineup. How to choose between Vanguard and Fidelity Choose Vanguard if you want a plan administrator/recordkeeper strongly aligned to low-cost investing , with support for plan design and compliance , and your needs center on 401(k) (or SEP IRA) administration. Choose Fidelity if you need coverage across 403(b) and/or defined benefit in addition to 401(k), prefer a provider with published entry-level pricing examples , or want a broad workplace platform backed by a large organization. Before deciding, request a proposal from each provider that itemizes recordkeeping fees , any asset-based charges , participant service levels , and what’s included for compliance testing, plan document services, and plan design consulting . That side-by-side comparison will usually reveal the true cost and service differences for your specific plan.