Retirement report: Quarter of employers eliminate match to 401(k) plans

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.

25 comments Add your comment

BG

June 22nd, 2009
2:07 pm

Thanks Obama!

JF McNamara

June 22nd, 2009
2:10 pm

Shouldn’t that be Thanks Bush? Wasn’t he the decider for an entire 8 year period before the economy tanked. Obama inherited the problems he made. You should thank Obama for stabilizing the situation.

jarvis

June 22nd, 2009
2:45 pm

What’s stable?

DJ

June 22nd, 2009
2:54 pm

What has Obama to do with this? You people are ignorant.

Yep

June 22nd, 2009
2:58 pm

It should be thanks Mr. Government official. All are to blame for our losses. We should implement term limits so that these pariahs are not allowed to flourish in Washington. We need less entitlement and more autonomy!!

c

June 22nd, 2009
2:58 pm

People like to blame which ever opposing leader is in office when things go to crap. However, Bush and Obama have had little to do with the economy (although the stimulus was a bad idea). If you want to point fingers, you should probably start with yourself. People were content with their 401k rising every year and it never occurred to them that the market needed to correct itself. If you look at historic trends it was easy to see we were on a bubble. Most did not believe that housing would be the bubble to pop, but it did. Now everyone wants to blame CEOs when if they had questioned practices all along and practiced hedging/risk management we would not be in as bad of a mess. If you want to point at a group it should be at the representatives on the financial committee. Economies are cyclical so there is no need for everyone to panic causing more chaos.

Kristin

June 22nd, 2009
3:31 pm

Thanks Alan Greenspan!

The Truth

June 22nd, 2009
3:42 pm

Who cares! I don’t need it because I’m gettin’ over $4,000 back from my 2008 tax return. Wooohooo!

SaveOurRepublic

June 22nd, 2009
3:50 pm

Be ye not duped by the ponzi scam that is (smoke & mirrors) Wall $reet folks! Investments pegged to fiat currency (controlled by the Central Banking Cartel) will continue to falter (along side intentionally weakened currency like the U.S. dollar). Invest in tangible assets with intrinsic value like gold, precious metal coins. Be prepared when the dollar (& stock market) totally bottoms out!

amy

June 22nd, 2009
3:53 pm

Right on, C!

There needs to be an economics course that ALL high school kids should be required to take so they don’t turn out as ignorent as all of you. (Exept for C)

amy

June 22nd, 2009
3:55 pm

To “The Truth” you’re just getting YOUR money back, which you stupidly lent to the government tax free over the year 2008. Do a better job in your tax planning. The goal is to get as close to 0.00 back without owing any money. Geez!

BG

June 22nd, 2009
3:57 pm

DJ

June 22nd, 2009
4:09 pm

All these comments and BG still doesn’t get it.

Reality

June 22nd, 2009
4:16 pm

“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”

The blame Obama crowd only read headlines and chime in. I believe Mr. Obama took office in JAN.

The Truth

June 22nd, 2009
4:18 pm

Don’t be a hater Amy! You must be jealous! I have $4,000 coming my way and you probably had to pay out some money for your taxes. Refunds are a good thing! Everyone wants a refund when they file…nobody wants to pay on April 15th!

jct

June 22nd, 2009
4:23 pm

@Truth…you are truly an idiot. THe goal should be zero. Why would you want to give the government a $4,000 interest free loan. I would rather pay a small amount. I know how to save money so I need to loan the government my hard earned dollars during the year.

Methinks, this is why our country is in trouble. Most folks don’t have a grasp of basic finance.

Shanel

June 22nd, 2009
4:27 pm

Uh,Amy…you spelled ignorant wrong. You spelled except wrong as well.

The Truth

June 22nd, 2009
4:34 pm

@jct…So, you are telling me that if you found out you had a refund coming on April 15th you would not be happy becuase you overpaid the gov’t? You were happier staying flat or close to zero? Don’t tell me that you were hoping for a surprise refund, even a small one. OK, so I I overpaid the government and stumbled across an extra $4,000. It is a heck of a lot better than having to pay a bunch of money on April 15th. I see it as a forced savings plan.

Shanel

June 22nd, 2009
4:42 pm

The Truth: Sorry, that’s not logical thinking you have going on up there. You loaned your money out for free all year and you’re just happy as a clam to get it back interest free?… DON’T GO INTO BANKING!

Ya Big Dummy

June 22nd, 2009
4:49 pm

The Truth- Check to see what Clark Howard says about giving the government an interst free $4000 loan. Geez.

The Truth

June 22nd, 2009
4:51 pm

Wouldn’t you rather have a refund instead of having to pony up some unexpected cash every year? Why do you have to be so jealous? I’m debt free with savings in the bank. Don’t tell me I don’t know how to handle money. Wow…another hater.

The Truth

June 22nd, 2009
4:57 pm

Hey Ya Big Dummy: Clark Howard would say it is much better to recieve the $4,000 and have it in the bank than have to come out of pocket and possible having a hard time payint the $4,000. I can see why this country is in such financial turmoil with all these people in credit card debt and having to pay the gov’t on top of that. Whew…I’m glad I can pay my bills and get some fun surprise money coming my way.

keep it real

June 22nd, 2009
5:00 pm

Truth, I think what you don’t understand is that a large refund is not good. But the reality is that your income is low and you qualify for low income tax credits.

The Truth

June 22nd, 2009
5:18 pm

Keep it real: I make plenty of money to satisfy my needs and wants. I have no credit card debt and money in the bank. Notwithstanding my income, I am sure I am in a better financial situation than most on this board.

Anastasia Beaverhausen

June 22nd, 2009
5:25 pm

Unreal how narrow the focus of so many people – If you look at history, the 401K program was born out of a tax loophole for a minority of taxpayers – as corporations discovered the benefit of providing LESS benefits to it’s employees than a traditional pension plan; the 401K plan became the defacto standard for “self driven” retirement plans. Now that corporations are making less profit, they are now eliminating their contribution to the employee plans…making it truly a “self driven plan”. If anyone is to get angry about this – get angery at the level of corporate greed that exists in this country. Every coporate benefit has been either cut or retired completely. And we continue to compensate corporate leaders at a rate of 40tiems that of other countries!