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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsAmericans are raiding retirement savings during coronavirus pandemic
As households struggle to make ends meet, more Americans have been forced to halt or raid their retirement savings in this coronavirus-induced recession.
Nearly 3 in 10 people have decreased the amount of money theyre setting aside for retirement or stopped saving altogether due to the economic fallout of Covid-19, according to a FinanceBuzz survey published in August.
A large share of consumers have also pulled money out of savings.
Around 30% of retirement savers tapped their retirement accounts over the last 60 days, according to a MagnifyMoney survey published in May. Those consumers pulled out $6,757, on average.
Just over half withdrew money in order to cover expenses and 26% did so because of a job loss, according to the survey, which polled 1,239 Americans with retirement accounts.
https://www.cnbc.com/2020/09/14/americans-are-forced-to-raid-retirement-savings-during-the-pandemic.html
Sherman A1
(38,958 posts)Im lucky in being retired and not needing to do so and talking with a close friend who is still working I find she is busy paying down her mortgage shortly then going to build her nest egg.
Leith
(7,809 posts)And when that runs out, they're SOL. rethugs don't have anything for them.
bdamomma
(63,849 posts)between those who have, and those have nots.
So sad.
progree
(10,907 posts)But there is a bit of a break in 2020 according to the OP's CNN article:
A lot of 401k plans let you borrow from them ... might be a better option than outright withdrawing from them.
sl8
(13,767 posts)Somone I used to work with had taken out a loan a couple of months before the 2007-2009 recession started.
While my 401k dropped ~ 60%, theirs hardly changed. Obviously, the money wasn't in their account for a couple of years, but they had full use of it.
It's hard to predict drops like that, though.