For many employees, the recession and immediate cash flow concerns have pushed saving for retirement into the background, Workforce Management reports. But an increasing number of companies are trying to get employees back on the long-term savings track by teaming up with their 401(k) providers to help educate workers.
Diversified Investment Advisors, for example, is busy educating employees at Novi-based Trinity Health Services about saving for retirement.
In the face of economic fears, many employees are finding it difficult to think about retirement. Some are decreasing payments into their 401(k) plans, others are taking out loans, and some are transferring their retirement dollars into more conservative investments.
According to Hewitt, 401(k) plan participants transferred $1.75 billion from equities to fixed income, marking the greatest shift to fixed-income investments since 1997.
In 2007, the percentage of Trinity employees who decreased their 401(k) plan contributions increased by 180 percent. And in Michigan overall, the number of employees who decreased their deferrals skyrocketed to 230 percent.
Source: Workforce Management
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