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COVID-19 and the toll on retirement savings


ARLINGTON, Va. — In contrast to the response during the 2008-09 financial crisis, more than 90 percent of employers will make their retirement plan contributions this year, though smaller organizations are more likely to have suspended or reduced plan contributions in the wake of the COVID-19 pandemic, according to PSCA’s latest snapshot survey of retirement plan sponsors.
Though most companies are not making changes to plan contributions this year, smaller organizations have clearly been more impacted by current conditions and are thus more likely to have suspended or reduced plan contributions – more than one-in-ten (11.5 percent) plans with fewer than 50 participants have made changes to the matching contribution – more than three times the number of organizations with 5,000 or more participants. ....

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