A number of companies have reduced or eliminated matches in the employee 401K plans as they struggled through the recession. As a result, not only employees have seen their retirement accounts plummet in value with the overall stock market, but many have started wondering if contributing to a 401K plan at work even makes sense.
Now there seems to be some good news on the horizon.
A recent Hewitt survey reports that about 80% of the mid to large companies surveyed plan on restoring the company match to the 401K plans.
Although the report is couched in a language that seems to imply that the companies want to do this because they are worried about their employees’ retirement savings (and I am sure many are), it just seems like a good business practice when the economy is on the mend. Currently the employee turnover rates are scraping the bottom but when the job environment improves we are pretty sure their will be increased mobility in the work force. Restoring some of the perks will do wonders for employee retention.
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Fortunately, my company continues to offer my 401(k) matching benefits and my balance continues to increase. I monitor the account continuously to make sure that I am still on target and also do my part to make sure that I am contributing the maximum amount in preparation for retirement.