While many employees haven't made any changes to their 401(k) plans as a result of the market decline, some others have decided to take action by reducing or stopping their contributions, according to a survey on Compensation.BLR.com and HR.BLR.com.
When asked how employees have reacted to drops in their 401(k) balances, 46 percent of respondents said most employees at their organization are riding out the storm. Thirty-three percent of respondents said most employees at their organization have reduced or stopped contributing to their.
Fourteen percent of respondents said that most employees at their organization have reacted by changing their selection/mix of funds. Less than 1 percent of respondents said most employees at their organization have increased their contributions as a result of the decline in the markets. The remaining respondents said their organization doesn't offer a 401(k) plan.
The survey included more than 350 respondents.
A recent survey by WorldatWork found that while a vast majority of employers have made no changes in their matching contribution to 401(k) plans, a small fraction of employers have eliminated the match.
Seventy-four percent of respondents reported no change in the employer matching contribution, the WorldatWork survey found. Three percent reported eliminating the match. By contrast, 15 percent of employers said they have either increased or are considering increasing the employer match. Eight percent said they have either decreased or are considering decreasing the 401(k) match.