Bosses, workers starve DC plans

Thirty-four percent of U.S. employers have reduced or eliminated matching contributions in their defined contribution plans in 2008, and 29% of employers plan to do so in the next 12 months, according to a study released today.
MAR 25, 2009
By  Bloomberg
Thirty-four percent of U.S. employers have reduced or eliminated matching contributions in their defined contribution plans in 2008, and 29% of employers plan to do so in the next 12 months, according to a study released today. Meanwhile, 20% of employees have reduced their deferral rates to their retirement plan over the last year, and in the next 12 months, 5% of employees intend to reduce how much they contribute to their defined contribution plan. Spectrem Group released two reports, “Plan Sponsor Attitudes at the End of a Tumultuous Year” and “Participants’ Attitudes at the End of a Tumultuous Year.” Both reports showed employers and employees alike are reducing their contributions to 401(k) and 403(b) plans due to the weakened economy. This increases concern about the ability of Americans to fund their retirements adequately, George H. Walper Jr., president of Spectrem Group of Chicago, said in a statement. The report “Plan Sponsor Attitudes at the End of a Tumultuous Year” is based on the online polling of more than 150 plan sponsors nationwide in February and has a margin of error of plus or minus 8%. “Participants' Attitudes at the End of a Tumultuous Year” is based on the online polling of 400 active retirement plan participants nationwide in February and has a margin of error of plus or minus 4.9%.

Latest News

Retirement delays, Social Security fears prompt advisors to rethink income strategies
Retirement delays, Social Security fears prompt advisors to rethink income strategies

Concerns about outliving savings and healthcare costs are reshaping how "Peak 65" Americans and advisors approach income planning.

Barred ex-Merrill Lynch advisor arrested in alleged $2.6M theft of former Miami Dolphin Pro Bowler
Barred ex-Merrill Lynch advisor arrested in alleged $2.6M theft of former Miami Dolphin Pro Bowler

Former advisor Isaiah Williams allegedly used the stolen funds from ex-Dolphins defensive safety Reshad Jones for numerous personal expenses, according to police and court records.

RIA moves: Modern Wealth tops $8.5B AUM as Aspen expands in Connecticut
RIA moves: Modern Wealth tops $8.5B AUM as Aspen expands in Connecticut

Modern Wealth's latest deal for a California-based fee-only RIA marks its fourth acquisition of 2025.

Empower defends private market access in 401(k)s in response to Warren scrutiny
Empower defends private market access in 401(k)s in response to Warren scrutiny

Sen. Warren has warned of private market investment risks due to opacity, illiquidity, and past regulatory issues.

AI is gaining traction with buy-side equity traders and may be an unstoppable force
AI is gaining traction with buy-side equity traders and may be an unstoppable force

Use of the technology is growing and asset managers see transformative benefits.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.