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Study: 401(k) plans soar
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November 1, 1999: 5:08 p.m. ET
Evaluation by Fidelity gives U.S. companies good marks for their efforts
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NEW YORK (CNNfn) - Fidelity Investments, the largest provider of 401(k) plans in the United States, gives American companies a good grade for their efforts in helping employees get ready for retirement.
A new study by Fidelity found that 76 percent of U.S. companies match employee contributions and 96 percent provide Internet access to the plans.
The report is based on data from about 5,400 retirement plans serviced by Fidelity.
The study found that 50 percent of the plans match 50 cents on the dollar. About 25 percent of the plans match more than 75 cents on the dollar.
Only 26 percent of the plans offered immediate, full vesting. Most plans require one year of service in order to enroll in a retirement plan.
Fidelity found that about 75 percent of employees participate in 401(k) plans, with an average account balance of $60,000. Employees are saving an average of 7 percent of their salaries, the study found.
The study also said that 83 percent of employees with more than 10 years on the job are participating in retirement plans. At the other end of the spectrum, 50 percent of people between the ages of 20 and 29 participate.
Companies have also increased the number of investment options they offer from an average of seven in 1995 to nine in 1998. But among large plans, the offerings rose from 14 to 25.
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