New Charles Schwab Data Reveals Increase in 401(k) Plan Participation.Data Also Shows a Majority of Employers Continue to Match Contributions SAN FRANCISCO San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden -- Charles Schwab Charles Schwab can refer to:
Employees or other beneficiaries who are eligible to receive benefits from a company's employee benefit plan. continued to receive matching contributions Matching Contribution A type of contribution an employer chooses to make to his or her employee's employer-sponsored retirement plan. The contribution is based on elective deferral contributions made by the employee. from their employer. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. data taken from retirement plans serviced by Schwab, overall 401(k) plan participation increased four percentage points through the end of 2008, in the middle of the financial crisis, to 77 percent from 73 percent at the end of 2007. The participation rate jumped even higher, to 84 percent from 77 percent, among plans that offer automatic enrollment programs. However, whether or not automatic enrollment was offered, participation rates generally increased across the board, particularly among small and mid-size companies. "The good news is that most employees are sticking with their 401(k) plan, which continues to be one of the best vehicles to save for retirement," said Catherine Golladay, vice president of 401(k) participant education and advice at Charles Schwab. "The even better news is that people are also contributing to their accounts at almost the same level as they were prior to the market downturn. In fact, the average contribution rate in our plans stayed around seven percent from 2007 to 2008 which is a reflection of people getting more serious about saving." [TABLE OMITTED] Most Employers Still Offering Matching Contributions Despite enormous pressure on many companies to cut costs, relatively few eliminated their 401(k) match among Schwab 401(k) plan clients. As of July 31, 2009, less than one in ten employers (9%) stopped making matching contributions according to Schwab data.1 Sponsors in some of the industries most impacted by economic conditions, including manufacturing and retail, were more likely to suspend their match. Comparatively, no companies in the healthcare or wholesale industries suspended their match, according to the Schwab plan data. Overall, nearly seven in 10 (69%) employers are currently offering a 401(k) match. "Our plan sponsor clients tell us that the employer match is one of the most important 401(k) plan features for employees and eliminating it is a last resort even in difficult economic times," said Robyn Alcorta, vice president of 401(k) client services for Charles Schwab. "Matching employee 401(k) contributions is important in keeping the 401(k) benefit competitive and driving high participation and savings rates, and employers tell us that these factors lead to a more productive and loyal workforce." Most 401(k) Participants Continue to Avoid Hardship and 401(k) Loans While the economic crisis of 2008 was serious, most participants in Schwab-serviced 401(k) plans resisted temptation to tap retirement savings. The number of people taking loans from their 401(k) plan actually decreased in 2008 to 5.67 percent from 5.91 percent in 2007. The number of people taking hardship loans increased, but only slightly, to 0.91 percent in 2008 compared to 0.8 percent in 2007.2 About Charles Schwab The Charles Schwab Corporation (Nasdaq:SCHW SCHW Silver Chitin Handwraps (Everquest gaming) ) is a leading provider of financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , with more than 300 offices and 7.6 million client brokerage accounts, 1.5 million corporate retirement plan participants, 667,000 banking accounts, and $1.36 trillion in client assets. Through its operating subsidiaries, the company provides a full range of securities brokerage, banking, money management and financial advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal to individual investors and independent investment advisors. Named Highest in Investor Satisfaction by J.D. Power and Associates, its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC (Simply Interactive PC) An earlier umbrella term from Microsoft and Intel for a PC that works like a home appliance. For example, it has a sealed case, uses external connectors for expansion and boots in just a couple of seconds. , www.sipc.org), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against and investment advice; retirement plan and equity compensation plan services; referrals to independent fee-based investment Fee-Based Investment An investment account in which the advisor's compensation is based on a set percentage of the client's assets instead of on commissions. Contrast this to commission-based investment, in which the advisor makes money based on the amount of trades made or the advisors; and custodial, operational and trading support for independent, fee-based investment advisors through its Advisor Services division. The Charles Schwab Bank (member FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). ) provides banking and mortgage services and products. More information is available at www.schwab.com. (1009-11488) 1 Match data measured from 12/31/2007 through 7/31/2009 among 664 plans serviced by Schwab. 2 Loan and hardship data measured from 12/31/2007 through 12/31/2008 among 664 plans serviced by Schwab. |
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