Companies ready to restore 401 (k) matches abolished after massive cost cutting during recession
San Francisco, CA -- (SBWIRE) -- 09/24/2012 -- With new 401(k) plans, companies have now decided to give their workers a little extra cash to save for their respective futures. Employees had a tough time during the 2008 financial crisis when they were left to look after themselves with their retirement savings plans.
Having cut the costs greatly during the great recession, organizations have been restoring 401(k) matches, according to Articles.Philly.com.
These matches are a powerful tool for people when it comes to saving for the future. Sometimes, these matches can be worth hundreds, even thousands, of dollars in extra pay for individuals.
Investment services firm Charles Schwab says many organizations offering these incentives are already back to their pre-crisis state.
Schwab conducted a survey of about 1,000 medium and large companies. The survey revealed that 72% of the employers were offering matches in 2008. The figures reduce to 67% in 2009. However, the number of companies offering these valuable inducements to their employees, moved back to 73% in 2012, showing the country is recovering from the recession.
Despite studies that indicate people are worried about their financial futures. “It’s a challenge to get people engaged [with 401(k)s, said Steve Anderson, head of Schwab Retirement Plan Services. “Personal advice can change that,” he added.
Further research shows that half of the workers in their 20?s may not be eligible for the 401(k), which effectively means they will miss out on the opportunity to take advantage of the matches from employers.
Only 33% of the employees plan to use up their savings as investments on their retirement. Most employers are keen to help their employees in making the best decisions regarding their investments, hence they have designed advice plans for their workers.
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