401(k) Contributions: Adjust for Inflation

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USA Today tells us that workers have not cut back their contributions to 401(k)s with the downturn. But the data it presents show they have. According to the article, average contributions have increased by 1.5 percent between 2007 and 2008. Inflation over this period has been close to 4.0 percent, which means that real contributions have fallen by close to 2.5 percent.

--Dean Baker

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