What a difference 10 days makes. In September, a turbulent 10 days on Wall Street set the nation reeling as the floor fell out of the financial system (see sidebar for timeline of the crisis). Months later, amid the fallout - in addition to the financial pain already being felt from declining home values and rising food and gas prices - is record unemployment, massive retirement asset losses, credit concerns for employers and a complete restructuring of the nation's finances.

Taken together, it's a set of circumstances no benefits professional would ever wish for. Nonetheless, HR/benefits pros find themselves smack in the middle of dealing with the result of the financial crisis - with employees on one side worried about their jobs and retirement security, and cost-cramped executives on the other seeking to save every dollar while waiting for falling shoes.

Trillions lost

Among the more acute effects of the current crisis is the considerable loss of retirement wealth - specifically, $2 trillion in the last 15 months, according to the American Congressional Budget Office.

Most recently, the American Employee Benefit Research Institute finds that through September, 401(k) participants lost an average 7.2% to 11.2% from their account balances. The losses were most painful for workers age 36 to 45, EBRI research director Jack VanDerhei concludes, while employees closest to retirement (age 56 to 65) were least affected.

Pension plans also have taken a hit. The Federal Reserve finds that between the second quarter of 2007 and the second quarter of 2008, public pension assets have tumbled more than $300 billion.

As a result of the stock market decline and shrinking dispensable income, many employee-investors have stopped saving for retirement altogether. A survey from AARP shows that 20% of workers age 45 and older have stopped contributing to their 401(k) in the last year, with 13% of that group using the siphoned funds to pay for daily expenses. Another 34% have delayed retirement, AARP reports.