401(k)s remain strong even after recession

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in Employee Benefits Program,Human Resources

Despite the tepid economy of the past five years, employers have remained committed to funding their employees’ 401(k) retirement benefits, according to a survey released in March by WorldatWork, a global HR association, and the American Benefits Council.

Although many companies cut back or canceled their 401(k) matches to conserve capital during the depths of the recession, 88% of survey respondents said their companies continuously maintained matching contributions throughout the economic downturn that began in 2008.

Now, employee participation rates are up, and workers are relying less on their 401(k)s for emergency cash.

Coming in the same week that the Dow Jones Industrial Average reached record highs—meaning many long-term investments have recouped losses that occurred in late 2008—the report signals good news for employees’ retirement prospects. Yet the survey also found that many employees are not taking full advanta...(register to read more)

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