Fidelity Investments is going to close down its 401(k) and enhance its 401(k) by raising company matches from 5% to 7%, the Associated Press reports. The company is also going to offer employees a health-savings credit they can use in retirement. Those who have existing pension benefits will be given the choice of rolling them into a profit-sharing plan or accepting them as annuities at retirement.
The company decided the offer the healthcare benefit after an internal survey showed that 71% were concerned about medical costs in retirement.
Today, only a third of Fortune 100 companies still have pensions, down from 50% in 2002 and 89% in 1985, according to Watson Wyatt Worldwide.