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Byline: Editorial Staff

Match or No Match, 401(k) Contributions Are Critical

Noting that one-quarter of employers have either already cut or plan to cut their 401(k) match, financial advisers are reminding investors of the importance of saving for retirement.

Most people contributed only the amount that employers matched, and without that incentive, financial planners and 401(k) consultants worry that contribution rates will go down. In fact, the average contributions fell from 9.2% in September to 8.8% in April, according to Mercer. The 401(k) consultancy recommends that people 55 or older contribute 25% a year to recoup losses from the market downturn in two years, or 15% for five years.

'Greed Will Come Again,' Eventually, Bill Gross Says

Get ready for subdued economic growth in the years ahead, as fear and frugality will dominate the mindset of U.S. consumers for at least a generation,PIMCO's co-CIO Bill Gross says in his July investment outlook. He projects annual GDP growth rates in the U.S. of 2% a year, down from the historical 3.5%.

"Greed will come again. But for now, the trend is the other say, and ...