Reducing your 401(k) contributions might seem smart if cash flow is tight or you are worried about market volatility in 2026.
You wouldn’t be alone. Investors faced the same dilemma last year as the market whipsawed between highs and lows. A Morgan Stanley at Work study conducted in the spring found that 39% of surveyed employees cut their 401(k) contributions due to economic pressure, while 67% reduced their overall savings rate.
