401(k) Squeeze: Companies Delay Matching Funds

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

Feb. 14 (Bloomberg) -- Julie Hyman reports on company matches for 401(k) plans. She speaks on Bloomberg Television's "In The Loop." (Source: Bloomberg)

Where companies are contributing basically one time per year.

You don't get the interest you could have accrued throughout the year.

Companies are cutting back.

I want to take you through some of them.

Armstrong really got hammered for this.

Jpmorgan chase is one of them.

It started delaying matches back in 2009. these are some of the changes that include sort of deferral type changes.

Then a lot of these changes were made during the financial crisis or just afterwards.

Hp lowered its match during the crisis from six percent to four percent.

Caesars reinstated in 2012 but only with a max contribution of $450. that is how much the company would match.

We have seen some of the contributions get squeezed.

Whole foods only match 15% of the first $1000. we look at health care, we look at options.

Them at that was a presentation issue.

On the flipside, this could actually benefit employees.

The market could go down.

Nonetheless, if you look at the numbers right now, this the longer-term shift from 401(k)s to pensions, which had to contribute to.

People are only going to end up with $4800 per year with 401(k) balances.

We will be back with the

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change