Well, it isn't 1% that is killing it for you if you manage to get 8% interest. Not investing is what kills it. The problem is more clear if you get say 5% interest and pay 1% fee from that. That is where you need to consider switching to that index fund which has minimal fees and grows at 8% on average.
But again, most don't invest and that is the biggest problem.
Anyway good article to wake people to the truth of fees :)
Well, regardless of your return an extra 1% adds up to a nice chunk of money over one's career. But yes, not investing at all is much much worse.