If your employer stops matching your 401k, don't follow suit


During the pandemic lots of employers have stopped matching employees' 401k contributions. If this happens to you, experts say don't stop contributing.

KTRH Moneyman Pat Shinn says double your contribution, if you can.

"You should definitely continue to contribute to your 401k through salary deferral; if you stop contributions, even for just a short while of a year or two, it can make a very, very big difference in how much you'll have at retirement time."

Shinn says stock prices will rise as the economy recovers.

"Now the markets are going to start moving ahead as things reopen and profits start to pick back up. The bottom line is you don't want to miss out on those gains; be sure and continue to contribute to your 401k."

Shinn says don't assume this is just temporary; he says some companies might stop contributing for years. Shinn says in 2008 Ford stopped matching 401k contributions for two years, so this could last for a while.


Sponsored Content

Sponsored Content