Small Business Employees' Retirement Plan Contributions Are Holding Steady Despite the Pandemic

Despite the fact that tens of millions of Americans have lost their jobs due to the COVID-19 pandemic enveloping the country, the number of retirement savers working for smaller businesses who have cut back on their plan contributions is remarkably low -- or so says a new report by retirement plan administrator Ascensus.

Between January and June, 93.1% of savers using its retirement plans didn't make any changes to their contribution rates, according to the Ascensus report. In fact, only 1.3% of those savers stopped their retirement savings deferrals, and just 1.9% reduced their savings rate. Another 2% of participants stopped contributing because they were furloughed or laid off.

Here's some more positive news: 3.7% of savers actually increased their retirement plan contribution rates. So is it possible that the COVID-19 pandemic won't end up wreaking quite as much havoc on Americans' retirement plans as expected?

Continue reading

Source Fool.com