Retirement Retirement Planning

More Employers Are Quietly Suspending Their 401(k) Match in 2026 - Here's What to Do If It Happens to You

Employers are doing away with retirement matching, at employees' expense.

By Paige Cerulli , Edited by Andrea Basse

Updated May 19, 2026

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A 401(k) may be a key component of your retirement plan, and an employer's matching contribution may help boost your retirement savings. Unfortunately, some employers are quietly suspending or reducing those matching contributions, which may have a significant financial impact on your retirement savings over time.

Here's what you should know if your employer currently matches contributions, including ways you could navigate this tricky situation.

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Why matching contributions matter so much to retirement

Matching contributions made by an employer may provide a powerful boost to your retirement account. Data from the Investment Company Institute (ICI) and ISS Market Intelligence shows that roughly 70 million workers participate in employer-sponsored 401(k) plans. According to the Vanguard How America Saves report, the average employer match is about 4.6% of an employee's pay. That's made in addition to the employee's retirement contributions.

If you make $85,000 per year and your employer offers a 4.6% match, your employer would contribute $3,910 per year to your 401(k). If you contribute 10%, or $8,500, then you and your employer are contributing a total of $12,410 per year to your retirement account. Those employer matching contributions add up year after year, helping to build your retirement account.

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How employers are changing their matching contributions

Numerous major employers have already made moves to suspend or end their matching contributions. Business Insider reported that TTEC, a customer experience and technology services provider, reportedly paused its 401(k) matches for employees. That pause was scheduled to last through the end of 2026.

In October 2025, paint and coatings company Sherwin-Williams set a temporary pause on retirement matching contributions. The company later announced that those contributions would resume in February 2026, and also provided a discretionary makeup contribution to help compensate for the pause.

The cost of losing an employer match

Employers who suspend or end their matching contributions may cause employees to lose tens of thousands of dollars. If you earn $85,000 per year and your employer offers a 4.6% match of $3,910, your employer would contribute a total of $78,200 across 20 years, not accounting for any raises or promotions you might receive. If your employer stops those contributions, you could lose out on more than $78,000 during 20 years of working for that employer.

But when you account for the effects of compound interest, the loss is even greater. During 20 years at a 6% average rate of return, those employer contributions might reach approximately $146,455. Ending those matching contributions might lead to a tremendous financial loss.

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Ways to navigate the loss of an employer-matching contribution

If your employer shares that theyare suspending or ending matching contributions, try to get as much information as you can. Employers sometimes make these decisions during times when finances are tight or in an effort to avoid layoffs. Try to find out if the cut is temporary or if it's expected to be long-term.

Knowing that you're facing the loss of matching contributions, you may need to rethink your retirement strategy and make some changes, but there are ways to recover.

Continue 401(k) contributions

Your 401(k) contributions help lower your taxable income. For example, if you're in the 22% federal tax bracket and you contribute $15,000 annually to your 401(k), you might lower your federal tax liability by approximately $3,300.

You might consider increasing your contributions to make up for the gap left by the loss of your employer match. If finances are tight, then perhaps you could make a small increase, like 1% a year. You may also want to revisit your contribution amounts if you receive a pay raise or promotion.

Contribute to a Roth IRA

In addition to maintaining your 401(k) contributions, you may want to contribute to a Roth IRA, another type of retirement account. Your Roth IRA contributions don't reduce your tax liability like your 401(k) contributions, but your withdrawals from a Roth IRA are tax-free in retirement. If you anticipate being in a higher tax bracket when you retire, a Roth IRA may help you avoid paying taxes on your money when you eventually start making withdrawals.

The maximum Roth IRA contribution limit for 2026 is $7,500, or $8,600 if you're over age 50, so you could potentially max out your Roth IRA while still contributing to your 401(k).

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Contribute to an HSA

You might also consider contributing to a health savings account (HSA) if it's available through your health insurance. Your HSA contributions are pre-tax, so you avoid paying federal taxes on that money. The contributions are tax-deductible, plus eligible purchases may be made tax-free when you use your HSA account.

Additionally, your HSA funds accumulate interest tax-free, and since the funds may be carried over year after year, your savings may continue to grow. After age 65, you may withdraw HSA funds without a penalty, and you might use those funds for retirement needs.

Bottom line

If your employer matches retirement contributions, check to see whether the plan has a vesting schedule. A vesting schedule may give you full ownership of the contributions the employer makes after a certain period of time. If your employer suspends a match before the contributions are fully vested, you might lose that money that you believed was already yours.

Navigating the end of an employer retirement match may be difficult, but there are ways to still build your retirement savings. Consider speaking with a financial advisor to learn how you could best set yourself up for retirement.

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