Hanging in with retirement plans

Posted at 11:59 AM on November 24, 2008 by Bob Collins (3 Comments)
Filed under: Economy

Americans are still putting money into their 401Ks, despite the dwindling returns, a survey by Hewitt Associates released today shows.

An analysis of 2.7 million U.S. employees found the average 401(K) has dropped 14 percent so far this year, down to $68,000 from $79,000 at the start of the year.

"Some have lost more than 30 percent," the report said. Gosh, it's almost like they were talking directly to me on that one.

Only about half of the 401(K)s are invested in the stock market, according to the survey, and more than 6 percent of those surveyed cashed out, a move that runs contrary to most financial advice these days.

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Comments (3)

Yup. Not looking forward to opening that statement next month. But, being on the younger side, I'm fortunate to have time on my side, so I'm actually thinking of bumping up my contributions a bit.

By the way, welcome back, Bob! In your absence, I had to fall back on the rag out of New York for my hourly news fix. Glad News Cut is back and as ornery as ever.

Posted by AD | November 24, 2008 12:25 PM

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Yeah i lost 40% but i too am lucky enough to be young right now. I upped my contributions in October. I want to buy as much as i can while prices are low. I just decided to stop looking at my 403(b) statements.

Posted by Colin | November 24, 2008 1:56 PM

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I am also young and ignoring my IRA statement.

I wonder if this crisis will change the ratio of stocks to bonds that financial planners suggest as you get older.

I work with traditional pension plans (for a competetor of Hewitt). I'm glad I have one.

Posted by brian | November 24, 2008 4:14 PM

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