10:46 am June 22, 2009, by Henry Unger
Retirement is not a pretty picture right now.
Reuters is reporting that nearly a quarter of U.S. employers have eliminated matching contributions to employee 401(k) retirement plans since September to save money amid the economy’s downturn, according to research released on Monday.
A quarter of U.S. employers also have limited enrollment to the plans rather than open them to all employees, according to the study conducted for Charles Schwab Corp. by CFO Research Services.
Although the study showed 23 percent of companies have eliminated 401(k) matching contributions, Reuters reports that most see the move as temporary, said Steve Anderson, who heads Retirement Plan Services at Charles Schwab, a financial services provider.
“Most view that as a temporary step. They don’t see that as a long-term approach,” he said.
Hopefully, he turns out to be right.
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