On top of the declining value of their investments, many employees also saw their employers’ 401(k) matching contributions disappear during the recession.
A Grant Thornton survey found that 29% of companies reduced or intend to modify their contributions to employees’ 401(k) accounts. Of those employers, two-thirds have eliminated matching contributions altogether. Large employers were more likely than small employers to change plans.
The good news: A separate Watson Wyatt survey found that 25% of employers said they intend to restore some of those cuts in the next six months.