Americans Increasingly Dipping Into Retirement Savings Account

Using money to spend on current expenses

Americans are increasingly dipping into to their retirement savings accounts for non-retirement needs, according to new data. More than one in four American workers with 401(k) and other retirement savings accounts use them to pay current expenses, like mortgages, credit card debt or other bills. The withdrawals subsequently drain nearly a quarter of the $293 billion that workers and employers deposit into the accounts each year. Those in their 40s have been the most likely to do so with one-third turning to their retirement accounts for relief. Data from Vanguard, one of the nation’s largest 401(k) managers, show a 12 percent increase in the number of workers who took loans against their retirement accounts or withdrew money outright since 2008. (Washington Post)

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