Companies Can Save Millions of Dollars by Suspending Their 401(k) Match for Just One Year, According to New Hewitt Analysis

Despite Significant Savings, Hewitt Says Companies Can Take Alternative Steps to Reduce 401(k) Costs without Jeopardizing Employees’ Retirement Savings

LINCOLNSHIRE, Ill.--(BUSINESS WIRE)--An increasing number of U.S. companies are suspending their employer 401(k) match in response to continued cost pressures. While the move is controversial, it is not surprising given today’s economic climate. According to a new analysis by Hewitt Associates, a global human resources consulting and outsourcing company, most companies could save millions of dollars by suspending their 401(k) match for only one year. Despite significant cost savings, Hewitt recommends employers take this step only as a last resort due to the significant impact it has on employees’ ability to save enough for retirement.

Read More...