It's an offer you can't refuse.
Employer-matched 401(k) plans really are the closest thing to a sure thing since Jenna Jameson retired. As the people over in HR are always saying, it's free money.
But the grumblings have begun in the back rooms about bringing these employer handouts to an end. Seems a cabal of pencilnecks over at some think tank have decided that money would be better spent on other things. They claim it would serve employees better if it were used to pay down 401(k) plan fees, lower health costs or on different benefits entirely.
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They've also suggested using that money to help people not saving for retirement at all — which one would think would grow if matching contributions were to end.
It doesn't sound like the number crunchers will get much traction with this, anyway. According to Hewitt Associates, 70 percent of companies said they don't plan any changes. Another 12 percent plan on addition or contribution boosts.
All of these numbers inspired me to look into this whole thing myself.
I walked around the office yesterday (I do that a lot) and conducted a little informal poll (I do that a lot, too). See, not too long ago, this growing media conglomerate bought our division from a small, private family company. We went from a 1980s-era non-matching plan to a healthy, 21st century matching one, rich with diverse investment options. Enrollment — which also became automatic — skyrocketed, at least according to my informal survey results. But that could be skewed since I skipped the mailroom guy.
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