How much of a hit are 401(k) balances really taking?
With the plunge the stock market took this fall and the roller-coaster ride ever since, retirement plan balances are taking a beating. But what’s the real damage?
These new benchmarks from Hewitt Associates can give you a good reality check. The good news? While some folks have lost as much as 30% of their nest eggs, most people haven’t taken nearly that big of a hit. The average drop is 14%.
Here’s more on where we are now, compared with a year ago:
As for the news that people are panicking and pulling out of their retirement plans, you should know that’s probably a bit of an exaggeration. Just 4% of employees have terminated their 401(k) plan contributions altogether.
If you’re seeing a significantly higher number than that, you’ll want to act fast.
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