News You Can Use: 401(k) balances, savings rates drop

A Hewitt Associates analysis of 2.7 million U.S. employees reveals that the average 401(k) plan balance has dropped 14% in 2008 to $68,000, down from $79,000 in 2007. In the past two months alone, employees, on average, have lost nearly 18% of their 401(k) plan savings, and some have lost more than 30%.

In addition, savings rates have dropped marginally, from 8% in 2007 to 7.8% in 2008, while 4% of employees have stopped 401(k) plan contributions altogether.