Free Site Registration


Companies Plan to Restore 401(k) Matches

Print
Email
Reprints
Lincolnshire, Ill. (February 9, 2010)

Many U.S. employers intend to restore company 401(k) matches that were suspended or reduced during the market downfall, according to a new survey by HR consultancy Hewitt Associates.

The survey also found that many companies plan to add automated tools and investment features that take the guesswork out of saving and investing. Hewitt's study of 162 mid- to large-sized U.S. companies representing 5.7 million employees found that 54 percent of employers today are less confident about their workers' ability to retire with sufficient assets than they were in 2009, when 66 percent expressed such confidence. In addition, less than one in five (18 percent) say they are very confident about their employees' ability to have enough retirement income to last throughout their retirement years.

To help employees meet their financial goals in retirement, Hewitt's survey found that 80 percent of companies that suspended or reduced their company match in 2009 are planning to restore it in 2010. In addition, the survey showed a continued emphasis among employers on automating 401(k) plans to help workers maximize the benefits of their retirement plans.

Advertisement

Almost half (46 percent) of employers that do not already offer automatic rebalancing — a tool that helps employees regularly balance their portfolios with their target allocations — are very or somewhat likely to add it to their plan in 2010. Nearly four in ten (38 percent) are very or somewhat likely to add automatic contribution escalation — where employees can elect to have their contribution rates increased automatically over time.

An increasing number of employers are also offering investment services and tools to help employees make better investment and savings decisions. Half (51 percent) currently offer online investment guidance and another 42 percent are very or somewhat likely to do so in 2010. In addition, 28 percent of employers currently offer managed accounts, which allow workers to delegate the overall management of their accounts to an outside professional. One-quarter of companies (25 percent) indicate they are very or somewhat likely to offer managed accounts in the coming year.

0 Comments

Be the first to comment on this post using the section below.

Add Your Comments...

Already Registered?

If you have already registered to Accounting Today, please use the form below to login. When completed you will immeditely be directed to post a comment.

 

Advertisement
Advertisement

What's New at Grant Thornton

May 14, 2012

CEO Stephen Chipman talks about his firm's new brand focus on growth, and its recent M&A activity.

Advertisement

SLIDE SHOW

Top 10 Payroll Mistakes Companies Make

May 14, 2012

Keeping your clients from running afoul of IRS rules around payroll taxes will help them avoid stiff penalties.

10 Years of the Top 100 Firms

May 6, 2012

Tracking trends at the biggest firms in the U.S.

Best Accounting Firm Taglines

April 27, 2012

Our favorite slogans from around the profession.

Favorite Busy Season Activities

April 10, 2012

LinkedIn Accounting members share the best methods to bust stress and boost morale.

The Best Places to Be an Accountant 2012

March 27, 2012

From our 2012 Regional Leaders list, we rank the best parts of the country to operate an accounting firm.

More Wacky Tax Deductions

March 26, 2012

LinkedIn members point out some weird tax deductions their clients have suggested.

7 Tax-Free Benefits for Employees

April 15, 2012

Employee rewards Uncle Sam can't touch.

Advertisement
Advertisement
Advertisement