10/1/2008: 401(k) Hardship Withdrawals and Borrowing Rise, Leading to Worries That Workers Will Have Even Fewer Funds for Retirement (Treasury & Risk)
Excerpt: "For Americans just scraping by, the only savings they've salted away are in a 401(k). That was fine in a growing economy. But now that it's slumping, inflation is up and layoffs are spreading, a small but increasing number of people are tapping those accounts. T. Rowe Price says 401(k) withdrawals rose 19 percent last year through June 2008. Vanguard reports its hardship 401(k) withdrawals rose 22% in 2007. Though just representing 1.5% of all plan holders -- these numbers are nonetheless troubling. Moreover, withdrawals aren't the only threat to the 401(k) assets of 44 million American workers."
Important word about authorship:
BenefitsLink ® (BenefitsLink.com) provides this page for you, with a hypertext link to an item we think is interesting and valuable for companies sponsoring employee benefit plans, employees who participate in plans, and firms who provide products and services to plans. But BenefitsLink is not the author of the item to which this hypertext link will take you (unless expressly indicated there).
|
|
|
