In the time of financial turmoil, one constant is that employers cut back on their employer contributions in the 401(k) plan they sponsor.
Among 152 sponsors surveyed by the Plans Sponsor Council of America, almost 22 percent of 401(k) plan sponsors with 1,000 or more participants in their retirement plans have either suspended or are considering suspending employer matches to those plans. That is just weeks into this Coronavirus pandemic, I expect numbers to grow as financial results will lead employers to further conserve money and cut back on the employer contributions. While this number is in line with the numbers seen in 2008, I believe that this pandemic will have a far greater negative impact on the economy and the matching contributions that employers fund.
