Originally posted by United Benefit Advisors (UBA)
Despite the best intentions of retirement plan sponsors, 24% of Americans report that they have borrowed against or took early distribution from their retirement plans in the past three years, according to recent data from Purchasing Power. The research finds that respondents are using their retirement funds to pay for everyday needs. These expenses include mortgage, rent and utilities (37%), medical expenses (24%), college tuition and expenses (22%) and credit card debt (22%). Big-ticket items, such as appliances, electronics and computers, are even taking a bite out of retirement funds, with 18% of respondents saying they’ve dipped into their plans to make these purchases.