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Why We're Robbing Tomorrow's Retirement To Pay For Today

Monday, January 21, 2013 - 10:25 AM
The good news is that employees continue to save for retirement.  The bad news is that nearly 25% of money deposited by employers and employees earmarked for retirement is being used for other than its intended purpose. 

From The Fiscal Times:
A large and growing share of American workers are tapping their retirement savings accounts for non-retirement needs, raising broad questions about the effectiveness of one of the most important savings vehicles for old age.

[...] 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.      

[...] A report due out this week from the financial advisory firm HelloWallet found that more than one in four workers dip into retirement funds to pay their mortgages, credit card debt or other bills. Those in their 40s have been the most likely culprits — one-third are turning to such accounts for relief.

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pearlbrownpearlbrown1,436 posts since
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