Employers cut back on 401(k) matches

Seeking to find cash wherever they can in this tough economic climate, 34 percent of companies have reduced or eliminated their matching funds to employee 401(k)s, and 29 percent plan to do so in the next 12 months, according to a survey by the Spectrem Group. The Spectrem Group surveyed a cross section of 150 U.S. companies to determine this trend. The survey has an margin of error of eight percentage points.

Employers are not the only ones saving cash by cutting back contributions. Spectrem found that 20 percent of employees have decreased the amount they are saving, with another five percent likely to do so in the next 12 months. The survey of employees sampled 400 retirement plan participants and has a margin of error of 4.9 percentage points.