3 votes

R.I.P. Retirement: 28% of Americans are Raiding Their 401k Plans

R.I.P. Retirement: 28% of Americans are Raiding Their 401k Plans

Posted on January 15, 2013

This trend has been in place since the financial crisis, but the fact that it is accelerating is extremely disconcerting. First off, this is not the kind of behavior that should be witnessed in an “economic recovery.” Second, we need to remember the huge percentage of Americans on food stamps and/or disability. As I have discussed previously, many of them also have jobs. So essentially, a wage and a check from the government is still not enough to survive. They still need to tap into a loan from their 401k plans.

From the Washington Post:

More than one in four American workers with 401(k) and other retirement savings accounts use them to pay current expenses, new data show. The withdrawals, cash-outs and loans drain nearly a quarter of the $293 billion that workers and employers deposit into the accounts each year, undermining already shaky retirement security for millions of Americans.

Read more: http://libertyblitzkrieg.com/2013/01/15/r-i-p-retirement-28-...




Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

that sounds low to me

if the govt really cared about the people, they would have suspended the early withdrawal penalties - 10%.

who would have the authority to change this?

RP R3VOLution

Labor, I think..

ERISA [Employee Retirement Income Security Act] gives jurisdiction of retirement savings plans to the Dept of Labor

http://www.dol.gov/compliance/laws/comp-erisa.htm