Issue link: https://www.e-digitaleditions.com/i/330423
[ 44 ] HRO TODAY MAGAZINE | JUNE 2014 High Anxiety The average employee will stress over finances—but you can help. By Rob Austin and Rob Pinkerton Retirement Plan There are few things more frustrating than automobile trouble. Not too long ago, my car simply stopped running. I'll be the first to admit that I skipped preventive maintenance every now and then. After all, my car had been working properly, and it was all too easy to find more important things to do with my time. However, once my car broke down, I quickly realized that any time and money I was trying to save by foregoing the occasional trip to the mechanic would be dwarfed by this repair. Like with maintaining a car, it is important to stay on top of overall financial health before getting into trouble down the road. This is particularly true at a time when many participants have likely seen good news in their 401(k) statements. According to Aon Hewitt research, the average participant balance in 401(k) plans is at an all-time high. Buoyed by high double-digit investment returns in 2013, the average account balance is now over $90,000, up from just over $57,000 at the beginning of 2009. Unfortunately, a more troubling picture emerges when we take a broader view of financial health. Research from HelloWallet shows that almost two-thirds of participants in defined contribution (DC) plans have seen their debt increase at a faster rate than their retirement savings grew. Moreover, between cashouts, loans, and withdrawals, nearly 25 cents out of every dollar leaks out of DC plans for purposes other than retirement, often times for