Benefits October 2, 2009

Majority in Poll Kept Hands off 401(k) in Downturn

October 2, 2009 (PLANSPONSOR.com) - Despite the ongoing economic turmoil, a poll taken for National Payroll Week found that the majority of those polled have not disturbed their 401(k) deferrals since September 2008.
Reported by

The American Payroll Association survey found that 60.9% of respondents did not make 401(k) deferral changes since September 2008, while 19.4% cut back their savings and 19.3% boosted their deferrals, according to survey data.

Some 85% of those making 401(k) changes raised their deferrals by 5% or less, while another 11.2% increased it between 6% and 10%. Of those lowering their deferrals, 82.3% dropped the figure by 5% or below and 11.5% between 6% and 10%.

The poll found deferrals of 11% to 15% (8.5%), 6% to 10% (39%) and 1% to 5% (47%). Among respondents whose employers offer a 401(K) or other defined contribution plan, 81.8% participate.

Sixty-eight percent of respondents’ employers offer a 401(k) (or other DC plan) and 25% offer a defined benefit program.

Survey results also included:

  • 55.1% of respondents would opt for higher wages over health benefits; and
  • 70% of respondents said it would be very or somewhat difficult to meet current financial obligations if a paycheck were to be delayed a week.

The survey results are available here .

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