Americans who are happy with their 401(k) may be less satisfied once they grasp the hidden fees baked into the policy, Tom Zgainer, CEO of retirement plan provider America's Best 401K, said Tuesday.
"What you think you might have — inherently its foundation is good — at the end of the day is not," he told CNBC's "Squawk Box."
Hidden fees in 401(k) plans cost Americans more than $17 billion a year, according to White House estimates. That can reduce retirement savings by as much as 60 percent.
The Department of Labor implemented a rules in 2012 to improve the transparency of fees and expenses in retirement plans. The problem is disclosures are buried in 25 to 50 page documents, Zgainer said.
"Fees are hidden in plain sight. It's almost impossible for the average person to articulate how those numbers add up," he said.