More Americans Raiding Retirement Funds EarlySubmitted by bobbyw24 on Thu, 04/28/2011 - 06:40
Despite increasing signs of a stabilizing U.S. economy, 19 percent of Americans — including 17 percent of full-time workers — have been compelled to take money from their retirement savings in the last year to cover urgent financial needs, the Financial Security Index found.
Though 80 percent of full-time workers didn't dip into retirement funds, far too many consumers are ill-prepared for emergencies, says Kim McGrigg, manager of community and media relations at Money Management International, a credit counseling agency.
"Perhaps the most alarming thing about these numbers is that they suggest a lack of other options," she says. "Consumers generally consider using retirement funds only as a last resort."