A new survey reveals that 46,000 U.S. firms have had to reduce their typical fund to 401(k) investors in the wake of Covid-19. The worst economic situation since the Great Depression, the cut has shattered businesses.
The Plan Sponsor Council of America stated that nearly 8% of employers cut down their 401(k) shares during the pandemic and 1% have planned to do the same.
The Executive Director at Plan Sponsor Council of America, Will Hansen, said the companies’ contribution has not been so huge, but it accounts for tens of thousands of 401 k plans narrowing the employees’ benefits. Examination into the survey shows that over 46,000 plans have reduced 401(k) funds to employees and 5,000 more will do so as well.
In recent months, economic indexes represent a seriously slow growth in jobs and retail sales. Hansen expressed hope over the future’s rebound as the coronavirus vaccine is on its way.