Practice

Suspending 401(k) matches for just one year can save most companies millions of dollars a year, but doing so can severely negatively impact participants' savings rates and long-term retirement outlook, and should be avoided, according to Hewitt Associates.

The best way to get investors the lowest 401(k) fees possible is to automatically enroll as many of them as possible into big plans with high contribution rates, according to a study released last week on the economics of 401(k) and defined contribution retirement plans by Deloitte and the Investment Company Institute.

While mutual funds aren't technically required to start using the short-form, summary prospectus until 2011, companies that switch early could see significant savings in printing and mailing costs.

The number of Americans who believe they will live a comfortable retirement has fallen markedly to 41%, down from 59% who believed this in 2002, Gallup found in its annual economy and personal finance survey.

Futuretrust Banking Center is offering customers a checking account focused on 529 college savings. The account earns 1%, which is deposited into parents’ 529 college savings plan each month.

Putnam Investments plans to double its 401(k) wholesalers from five to 10 by year-end, Defined Contribution & Savings Plan Alert reports. In fact, Putnam might even hire more, and it will definitely continue to hire 401(k) wholesalers in 2010, said Edmund Murphy, head of Putnam’s 401(k) business.

MassMutual has just laid off 65 workers, with most of the layoffs occurring in its Boston office, and the cuts spanning all departments—including finance, marketing and sales.

Adam Bold, founder of The Mutual Fund Store, is urging investors to stick with their retirement goals and says that if investors choose the right mix of mutual funds, they should be able to have a happy, secure and long retirement, Bloomberg reports.

New York Life Insurance has hired 100 staff to support sales of fixed annuities through the banks, on the heels of sales in this channel increasing 130% in 2008.

Small business owners view having a solid retirement plan as critical, both personally and for employees, according to an survey of 1,000 people by SunTrust Bank. Nonetheless, nearly 40% do not offer one.