Match Game

It looks like retirement may soon be a luxury most companies can't afford to give their employees:

About a quarter of companies have either suspended their 401(k) plan match or are considering doing so because of the economic downturn, according to a recent survey by CFO Research Services and Charles Schwab. The list of companies that have suspended matches includes Hewlett-Packard, Sears Holdings, Starbucks and Eastman Kodak.

However, a recent survey by Watson Wyatt found that nearly half of large companies that have reduced or suspended their 401(k) match plan to reinstate it within 12 months. Only 5% of companies said they don’t plan to reinstate the match.

But some companies are considering changing the amount of the match, or the way it’s calculated, employee benefits analysts say.

With an older population and a graying work force already in play, getting older seems to be an increasingly expensive proposition.