What are your employees thinking about doing with their 401(k)s in these difficult economic times?
A recent New York Daily News reader poll suggests that most current participants in a 401(k) plan intend to stay the course. Nearly half (49%) said they’d leave their investments alone and try to ride out the storm.
Surprisingly, 21% said they intended to increase their investments in the hopes of getting in on some bargains that will grow dramatically as the economy stabilizes. Another 10% intend to downshift a portion of their investments to more conservative options (such as bonds).
There is still a significant percentage (19%) that intends to get out entirely. It also should be noted that there’s only so much one can read into polls such as these. Responses are limited to people who not only participate in a plan but also take an active interest in them.
Nevertheless, there is at least hope that the dire predictions of massive long-term drops in 401(k) participation will prove to be unfounded.