Americans are still putting money into their 401Ks, despite the dwindling returns, a survey by Hewitt Associates released today shows.
An analysis of 2.7 million U.S. employees found the average 401(K) has dropped 14 percent so far this year, down to $68,000 from $79,000 at the start of the year.
“Some have lost more than 30 percent,” the report said. Gosh, it’s almost like they were talking directly to me on that one.
Only about half of the 401(K)s are invested in the stock market, according to the survey, and more than 6 percent of those surveyed cashed out, a move that runs contrary to most financial advice these days.
About the blogger
Bob Collins has been with Minnesota Public Radio since 1992, emigrating to Minnesota from Massachusetts. He was senior editor of news in the ’90s, ran MPR’s political unit, created the MPR News regional website, invented the popular Select A Candidate, started the two most popular blogs in the history of MPR and every day laments that his Minnesota Fantasy Legislature project never caught on.
NewsCut is a blog featuring observations about the news. It provides a forum for an online discussion and debate about events that might not typically make the front page. NewsCut posts are not news stories but reflections , observations, and debate.