Report: Average 401(k) plan balance plunges in 2008

The average 401(k) plan balance in 2008 plunged 28% to $57,200, according to a new Hewitt Associates report.

The report, which measured the 401(k) plans of 2.7 million U.S. workers, found the median plan lost 28.3%. Forty-four percent of employees who invested in such plans last year lost at least 30% of their savings. Just 11% of workers broke even or saw gains in their 401(k) portfolios.

Despite the losses, nearly three-quarters of workers contributed to their retirement plans in 2008, roughly the same percentage as in 2007. Only 5% stopped contributing last year.