Tag: 401ks
When between 45 percent and 60 percent of Americans don’t have enough money for retirement, encouraging saving is a national priority. A related issue is preserving the funds once they’re set aside. A survey released last month by Transamerica indicates that workers frequently resort to hardship withdrawals and loans from their 401(k)s, because they lack…
The brief’s key findings are: As 401(k)s and IRAs have become the dominant source of retirement saving, the potential for pre-retirement withdrawals – “leakages” – has grown. Leakages occur via three channels: 1) in-service withdrawals for hardships or after age 59½; 2) cashouts when individuals leave a job; and 3) loans. Estimates indicate that about…
