My last post got me to thinking – How many companies match 401ks, and how much? My old employer matched 100% up to 6%, with full vesting in 5 years. Here is some 2006 data via a press release from a company called Aon Consulting:
This study also shows that 85 percent of organizations make contributions to employee 401(k), 403(b) and 457 plans to a certain level. In fact, 29 percent of companies offer a 100 percent match on employee contributions, while 7 percent provide a 75 percent match and 39 percent of employers match 50 percent of employee contributions. The level to which companies provide a match varies, based on employee contribution. More than 40 percent of organizations match employee contributions of 6 percent or more of pay, 16 percent match pay contributions between 5 percent and 6 percent, and 18 percent of companies match employee contributions between 4 percent and 5 percent of pay.
By Jonathan Ping | Retirement | 5/26/06, 12:25am