Employees' 401(k) accounts may have taken a hit during recent market volatility, but that's not the only reason balances may be down. A new

As 62% of workers cut back on savings amid concerns about the economy, employers emphasize financial wellness

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2022-09-21 16:00:14

Employees' 401(k) accounts may have taken a hit during recent market volatility, but that's not the only reason balances may be down.

A new study from Morgan Stanley at Work finds 62% of employees have reduced their short- and long-term savings contributions amid high inflation and concerns about a possible recession.

Almost one-third — 31%— of respondents reduced contributions to their 401(k) plans. Meanwhile, 26% said they've cut back on paying down debts, 25% reduced their long-term savings, 24% scaled back emergency and short-term savings, 19% whittled down contributions to health savings accounts and 13% reduced contributions to a college savings fund.

Moreover, 71% of employees said money-related stress has negatively impacted their work and personal lives, a 7% increase from 2021. At the same time, 84% of human resource leaders said they're worried personal financial issues are affecting employees' productivity.

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