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As if your 401(k) hasn't already been through enough, there may be more trouble brewing: A number of companies ranging from automakers to real estate brokers have suspended or reduced 401(k) matches to their employee's retirement accounts.
"These are companies that are under a lot of pressure and have to cut costs," says Alicia Munnell, director of the Center for Retirement Research at Boston College.
The number of companies that have halted their matches is still small, but is expected to pick up next year.
"We have seen more companies reducing their matches," says Steve Dimitriou, a managing partner at Mayflower Advisors in Boston, "but I wouldn't say it's a widespread trend."
A survey of 248 employers, conducted by consulting firm Watson Wyatt, found that 2 percent of employers have already reduced their 401(k) match and 4 percent say they would reduce their match in the next 12 months.
Although cutting contributions may not be a widespread phenomenon, the companies that have made the cuts this year are large ones with thousands of employees.
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