Benefits September 16, 2009

Workers Reduce Savings to Get By

September 16, 2009 (PLANSPONSOR.com) - A CareerBuilder survey finds more than one-in-five (21%) workers say they have reduced their 401(k) contributions or personal savings in the last six months to get by financially.
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A nearly equal number (23%) of workers earning six figures or more also report that they have reduced their 401(k) or savings, according to a press release.

In addition, the number of workers saying they do not participate in any programs such as 401(k), IRAs or retirement plans has risen to 36% from 31% in 2008. One-third of respondents also report they don’t put any money aside into their savings each month, up from 25% who said so in 2008.

Thirty percent indicate they set aside $100 or less per month for savings and 16% save less than $50.

The survey found more workers are struggling with their budgets since the economic downturn began. Six-in-ten (61%) workers report they always or usually live paycheck to paycheck just to make ends meet, up from 49% last year and 43% in 2007.

Even those in the higher income bracket are struggling, as 30% with salaries of $100,000 or more report they too live paycheck to paycheck, up from 21% in 2008.

The survey was conducted online within the U.S. by Harris Interactive on behalf of CareerBuilder.com among 4,478 U.S. workers (employed full-time; not self-employed; non government); ages 18 and over between May 22nd and June 10th, 2009.

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