HR Consulting Company Report States That Companies Are Ready to Restore the Matching of 401(k)s

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Hewitt Associates, a human resources consulting and outsourcing services company, reports that as many as 80% of employers that stopped or reduced matching contributions to employees’ 401(k) programs will resume those contributions during 2010.

Although the report reveals that an average large U.S. company saved as much as $25 million a year by suspending 401(k) matches and improved cash flow, employers want to start contributing again because they are concerned employees are falling short of retirement goals.

Hewitt also discovered that companies are prepared to add retirement plan options that will help those employees reach their goals. One of those options is automatic portfolio rebalancing, which improves the likelihood of hitting asset allocation targets. Automatic contribution escalation is also being offered, which increases employees’ contribution rates. This also helps them save more of the money they need for retirement.

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