First, a brag on my employer: They recently decided to change the funds available in our 401(k) plan, moving away from a core line-up of actively managed funds to a line-up of low-cost index funds. Before, all of us were stuck with funds that included limited advice, and so average expense ratios were 0.55%. Now, we have the option to manage our funds on our own -- of course, what I'm doing! -- or to add on a retirement planner service for 0.35%. I am thrilled that our expense ratios are now extremely low, particularly for a 401(k). I'm getting Schwab S&P 500 Index for 0.09, and Vanguard Total Bond Market Index Admiral for 0.08 :-)
Second, reactions of some of my co-workers: Many people were annoyed they'd have to pick all new funds, since our entire old line-up was going away. Oh, so you're sad to lose the high expenses, and get all these low-cost options? Also, at least a month or two before the change, we started receiving notices and information about what was coming up, our office had a few information sessions with the investment company rep (who did a good job with his presentation), we had about a month where we could log in to our accounts and see what funds and allocation our Morningstar retirement planner would recommend for us, etc. Nevertheless, the day that our reallocations were completed, as soon as we received the email that we could now log in to see the changes in effect, people started looking for the first time and freaking out. It sounds like most people just went with the default retirement planner service, and several ladies in their 50s-60s were calling around to each other -- "They put some of my money in bonds! I don't want any bonds! Why would they do that? Oh my gosh, not bonds! They're saying I should be more conservative with my investments as I near retirement age, but that's stupid -- I want to be aggressive!"