By Pension and Benefits Editorial Staff
Nearly 60 percent of Americans withdrew or borrowed money from an IRA or 401(k) plan during the pandemic, and 63 percent said that they used those retirement savings to cover basic living expenses, according to a recent poll from Kiplinger’s Personal Finance magazine and Personal Capital.
The poll, which was conducted in November 2020, also found that 32 percent of respondents said they withdrew $75,000 or more from a retirement account, while 58 percent of those who took loans borrowed between $50,000 and $100,000. Additionally, 35 percent said they now plan to work longer due to the financial impact the pandemic has had on their plans for retirement.
In addition to covering everyday living expenses, the survey found that 41 percent of those polled said they used their distribution, or loan, to pay medical expenses, while:
- 32 percent said the money was used for home repairs;
- 26 percent used the money for auto repairs;
- 23 percent paid tuition, and
- 21 percent helped family members.
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