Low Financial Savvy, Inflation Erode New 401(k) Law’s Benefits

A combination of inflation-driven historic cuts in 401(k) contributions and low financial literacy among workers may prevent investors from reaping the benefits of a new set of retirement laws designed to boost access and market resiliency.

A quarter of working adults across age and gender groups slashed their nest egg contributions in 2022, according to new research from the TIAA Institute and Global Financial Literacy Excellence Center at George Washington University. Nearly half of those workers stopped saving for retirement entirely.

Most workers cutting contributions in response to post-Covid market swings are going it alone, relying on little to no ...