Here’s a sign things might not be as bleak as they seem: Three out of four employers that provide matches for employee 401(k) contributions are maintaining those contributions at the same level as last year.
That’s the news from a recent WorldatWork and American Benefits Council study.
It also revealed:
- 15% of employers have increased or are considering increasing their match level
- just 8% have reduced or are considering reducing their match, and
- only 3% have eliminated their match.
How much everyone’s paying
The most common employer matching contribution is 3% to 4% of a participating employee’s pay, while the most employees are contributing 5% to 7% of their pay.