How much of a hit are 401(k) balances really taking?

With the plunge the stock market took this fall and the roller-coaster ride ever since, retirement plan balances are taking a beating. But what’s the real damage?

These new benchmarks from Hewitt Associates can give you a good reality check. The good news? While some folks have lost as much as 30% of their nest eggs, most people haven’t taken nearly that big of a hit. The average drop is 14%.

Here’s more on where we are now, compared with a year ago:

As for the news that people are panicking and pulling out of their retirement plans, you should know that’s probably a bit of an exaggeration. Just 4% of employees have terminated their 401(k) plan contributions altogether.

If you’re seeing a significantly higher number than that, you’ll want to act fast.

Jennifer Azara

Jennifer, a member of the CFO Daily News staff, has covered business and finance for more than 22 years. She has written for CFOs, credit and collections professionals and accounts payable practitioners and has spoken at industry conferences on sales and use tax compliance.