While the news media has been pointing to signs that the global recession is easing, retirement plan participants are continuing to feel the pain in their pocketbooks.
 
A research report released by Spectrem Group revealed that 20% of 401(k) contributors are in a worse financial situation today than they were one year ago. Yet for those who are not participating in a retirement plan, 26% say their financial situation is worse than last year. The reason: 401(k) plan participants have continued to save and have recouped some of their balances since they hit their lowest point.

But there are other top concerns for defined contribution plan participants as well. Some 80% expressed healthcare reform as a top concern followed by the overall state of economy (77%) and the national debt (70%). That was followed closely by anxiety over unemployment (68%).

As Congress continues its debate over healthcare reform, “plan participants will be watching and trying to determine the impact that any legislation will have on their own financial welfares,” the Spectrem study said.

The Chicago research company said in the report, released Thursday, that plan sponsors and advisors need to provide information—either electronically or through information sessions—explaining what impact such changes would have on individual healthcare plans.