Employers Start Matching Retirement Plans Again [AUDIO]
Its another sign of an economic recovery. Employers are starting to contribute to 401k plans again.
Some 70% of companies are offering matching contributions into the popular retirement plan.
"Since the recession forced companies to scale back and lay off workers, this has now become a way to retain the best employees that these companies have," said Ken Kamen, president of Mercadien Asset Management in Mercer County.
"They realize that they've cut so much that now its time to show some employee loyalty and take care of them in the future" he added.
Its also a positive sign for employers that the economy is picking up.
"If companies are starting to contribute more to these retirement plans, then that's a good indicator that business is picking up, people are spending more and employers are becoming more stable," said Kamen.
He expects more companies to join in over the next few years, assuming there is not another financial meltdown, as employers get more comfortable.
"I think its a great step in the right direction that things are starting to return to pre-recession levels."