{"id":597476,"date":"2023-11-11T15:30:49","date_gmt":"2023-11-11T12:30:49","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/americans-continue-to-ransack-their-retirement-savings-survey-finds-video\/"},"modified":"2023-11-11T15:30:49","modified_gmt":"2023-11-11T12:30:49","slug":"americans-continue-to-ransack-their-retirement-savings-survey-finds-video","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/americans-continue-to-ransack-their-retirement-savings-survey-finds-video\/","title":{"rendered":"#Americans continue to ransack their retirement savings, survey finds [Video]"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a4020a9675e1\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a4020a9675e1\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/americans-continue-to-ransack-their-retirement-savings-survey-finds-video\/#The_fall-out_from_a_retirement_raid\" >The fall-out from a retirement raid<\/a><\/li><\/ul><\/nav><\/div>\n<div>The ravaging of retirement accounts is on a roll.<\/p>\n<p>The number of participants taking hardship withdrawals from their 401(k) was up 13% in the third quarter versus the second quarter, according to a new survey from Bank of America, which tracks about 4 million clients\u2019 employee benefit programs.<\/p>\n<p>That tallies up to more than 18,000 plan participants, the highest level in the past five quarters since Bank of America started tracking this data, and up 27% compared to the number of withdrawals during the first three months of the year.<\/p>\n<p>To be clear, while these numbers have ticked up, they are still a very low percentage of overall plan participants.<\/p>\n<p>Taking a loan from retirement savings is undeniably a quick cash move during uncertain times, but consequences exist.<\/p>\n<p>&#8220;In looking at our data across 401(k) plans, economic hardships continue to be a factor,&#8221; Lisa Margeson, managing director, Retirement Research and Insights Group at Bank of America, told Yahoo Finance.<\/p>\n<p>&#8220;While there could be several factors at play, the economic environment, following a year of high inflation and the rising cost of living, could be influencing this ongoing trend.&#8221;<\/p>\n<p><em>Read more:<\/em><a rel=\"nofollow noopener\" target=\"_blank\" data-i13n=\"cpos:1;pos:1\" href=\"https:\/\/finance.yahoo.com\/personal-finance\/retirement-planning-guide-150551603.html\" data-ylk=\"slk:Retirement planning: A step-by-step guide;cpos:1;pos:1;elm:context_link;itc:0;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link rapid-noclick-resp yahoo-link\"><em> Retirement planning: A step-by-step guide<\/em><\/a><\/p>\n<figure class=\"caas-figure\">\n<div class=\"caas-figure-with-pb\" style=\"max-height: 820px\">\n<div>\n<div class=\"caas-img-container caas-img-loader\" style=\"padding-bottom:66%\"><img decoding=\"async\" class=\"caas-img caas-lazy has-preview\" alt=\"The number of participants taking hardship withdrawals from their 401(k) was up 13% in the third quarter versus the second quarter, according to a new survey from Bank of America,\" src=\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/RBE4UJ5IuC6lSv_slDtnLw--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTEyNDI7aD04MjA-\/https:\/\/media.zenfs.com\/en\/aol_yahoo_finance_433\/629d4d2a22e87a6cef0d7cc06a534742\"><noscript><img decoding=\"async\" alt=\"The number of participants taking hardship withdrawals from their 401(k) was up 13% in the third quarter versus the second quarter, according to a new survey from Bank of America,\" src=\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/RBE4UJ5IuC6lSv_slDtnLw--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTEyNDI7aD04MjA-\/https:\/\/media.zenfs.com\/en\/aol_yahoo_finance_433\/629d4d2a22e87a6cef0d7cc06a534742\" class=\"caas-img\"><\/noscript><\/div>\n<\/div>\n<\/div><figcaption class=\"caption-collapse\">A growing number of people are taking hardship distributions from their 401(k) plans, survey shows. (Getty Creative)<span class=\"caption-credit\"> (SB Arts <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Media<\/a> via Getty Images)<\/span><\/figcaption><\/p>\n<\/figure>\n<p>According to the Bank of America survey, the average worker hardship withdrawal from a 401(k) plan in the third quarter of the year was $5,070, on par with the average withdrawal in previous quarters this year.<\/p>\n<p>Borrowing from retirement savings was also up. The percentage of 401(k) participants who got a loan from their workplace plan in the third quarter was 2.5%, the same as in the second quarter and up from 1.9% in the first three months of the year.<\/p>\n<p>The average loan amount: $8,530, consistent with the average loan amounts borrowed in the first six months of the year.<\/p>\n<p>The generations with the highest percentage of loans outstanding were Generation X (23.3%) who were born between 1965 and 1980, followed by millennials (15.1%) who were born between 1981 and 1996.<\/p>\n<p>Loans, however, are not permitted from IRAs or from IRA-based plans such as SEPs, SARSEPs, and SIMPLE IRA plans.<\/p>\n<p><em>Read more: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" data-i13n=\"cpos:2;pos:1\" href=\"https:\/\/finance.yahoo.com\/personal-finance\/ira-contribution-limits-205505142.html\" data-ylk=\"slk:These are the new traditional IRA and Roth IRA limits in 2024;cpos:2;pos:1;elm:context_link;itc:0;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link rapid-noclick-resp yahoo-link\"><em>These are the new traditional IRA and Roth IRA limits in 2024<\/em><\/a><\/p>\n<p>&#8220;Things are starting to crack,&#8221; Cary Carbonaro, a <a rel=\"nofollow noopener\" target=\"_blank\" data-i13n=\"cpos:3;pos:1\" href=\"https:\/\/carycarbonaro.com\/\" data-ylk=\"slk:certified financial planner,;cpos:3;pos:1;elm:context_link;itc:0\" class=\"link rapid-noclick-resp\">certified financial planner,<\/a> told Yahoo Finance. &#8220;This is a direct result of the Fed raising rates. We are just starting to see the effects of these hikes \u2014 whether it is auto loans at almost 10% mortgages at 8% or credit cards at 20-plus%. Add on the inflation and resumption of the student loan payments, budgets are stretched to the max for almost everyone but the very wealthy.&#8221;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_fall-out_from_a_retirement_raid\"><\/span><strong>The fall-out from a retirement raid<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Withdrawals, of course, are the most damaging for savers because an early withdrawal triggers some weighty taxes and penalties.<\/p>\n<p>A withdrawal from your 401(k) account is typically taxed as ordinary income. Also, you\u2019ll pay a 10% early withdrawal penalty before age 59\u00bd, unless you meet one of the IRS exceptions. These include certain medical expenses, qualified tuition payments, and up to $10,000 for <a rel=\"nofollow noopener\" target=\"_blank\" data-i13n=\"cpos:4;pos:1\" href=\"https:\/\/finance.yahoo.com\/personal-finance\/first-time-home-buyer-195246478.html\" data-ylk=\"slk:first-time homebuyers;cpos:4;pos:1;elm:context_link;itc:0;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link rapid-noclick-resp yahoo-link\">first-time homebuyers<\/a>. Some employer plans, too, will allow a non-hardship withdrawal.<\/p>\n<p>With a loan, it\u2019s not a total loss.You pull money from your retirement savings and then pay it back to yourself, typically within five years, with interest \u2014 the loan payments and interest go back into your account. Depending on what your employer&#8217;s plan allows, you can take out as much as 50% of your savings, up to a maximum of $50,000, within a 12-month period.<\/p>\n<p>One caution: If you leave your current employer, you might have to repay your loan in full straightaway. When you can&#8217;t repay the loan, it&#8217;s considered defaulted, and you&#8217;ll be on the hook for both taxes and a 10% penalty if you&#8217;re under 59\u00bd.<\/p>\n<figure class=\"caas-figure\">\n<div class=\"caas-figure-with-pb\" style=\"max-height: 829px\">\n<div>\n<div class=\"caas-img-container caas-img-loader\" style=\"padding-bottom:67%\"><img decoding=\"async\" class=\"caas-img caas-lazy has-preview\" alt=\"Man counting money in front of cashpoint.\" src=\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/XN2GHCpKEnRhURp4x8x2EA--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTEyNDI7aD04Mjk-\/https:\/\/media.zenfs.com\/en\/aol_yahoo_finance_433\/efcbd652230bc475e1df158173c78802\"><noscript><img decoding=\"async\" alt=\"Man counting money in front of cashpoint.\" src=\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/XN2GHCpKEnRhURp4x8x2EA--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTEyNDI7aD04Mjk-\/https:\/\/media.zenfs.com\/en\/aol_yahoo_finance_433\/efcbd652230bc475e1df158173c78802\" class=\"caas-img\"><\/noscript><\/div>\n<\/div>\n<\/div>\n<p><figcaption class=\"caption-collapse\">According to the survey, the average worker hardship withdrawal from a 401(k) plan in the third quarter of the year was $5,070. (Getty Creative)<span class=\"caption-credit\"> (simonkr via Getty Images)<\/span><\/figcaption><\/p>\n<\/figure>\n<p>Financial experts are rarely on board with clients t<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ing their 401(k) plans until you&#8217;re up and over the 59\u00bd year old hump.<\/p>\n<p>&#8220;Typically, taking a loan from your 401(k) should be one of the last resorts since you will miss out on potential market appreciation as the borrowed amount is not invested,&#8221; Ryan Haiss, a certified financial planner at <a rel=\"nofollow noopener\" target=\"_blank\" data-i13n=\"cpos:5;pos:1\" href=\"https:\/\/www.flynnzito.com\/\" data-ylk=\"slk:Flynn Zito Capital Management;cpos:5;pos:1;elm:context_link;itc:0\" class=\"link rapid-noclick-resp\">Flynn Zito Capital Management<\/a> in Garden City, N.Y., told Yahoo Finance.<\/p>\n<p>Another fallout from using your retirement cache for short-term expenses is that by pulling cash out, even for a short period, your retirement funds miss out on compounding growth on the borrowed amount.<\/p>\n<p>&#8220;We haven\u2019t had many clients reach out to us about drawing from their 401(k) just yet,&#8221; Haiss added. &#8220;Before investing, we strongly encourage our clients to build an emergency fund, which can be anywhere from 3 to 6 months of expenses. That would of course be the best place to draw from in the event of an emergency.&#8221;<\/p>\n<p>If taking a loan or withdrawals from your 401(k) is unavoidable, then &#8220;you should attempt to continue contributions while repaying the loan, especially up to the employer match, if available,&#8221; Haiss said. &#8220;Otherwise, you are missing out on \u2018free money\u2019 from your employer.&#8221;<\/p>\n<p><em>Kerry Hannon is a Senior Reporter and Columnist at Yahoo Finance. She is a workplace futurist, a career and retirement strategist, and the author of 14 books, including &#8220;<\/em><a rel=\"nofollow noopener\" target=\"_blank\" data-i13n=\"cpos:6;pos:1\" href=\"https:\/\/kerryhannon.com\/?page_id=9253\" data-ylk='slk:In Control at 50+: How to Succeed in The New World of Work\";cpos:6;pos:1;elm:context_link;itc:0' class=\"link rapid-noclick-resp\"><em>In Control at 50+: How to Succeed in The New World of Work&#8221;<\/em><\/a><em> and &#8220;Never Too Old To Get Rich.&#8221; Follow her on Twitter <\/em><a rel=\"nofollow noopener\" target=\"_blank\" data-i13n=\"cpos:7;pos:1\" href=\"https:\/\/twitter.com\/KerryHannon\" data-ylk=\"slk:@kerryhannon;cpos:7;pos:1;elm:context_link;itc:0\" class=\"link rapid-noclick-resp\"><em>@kerryhannon<\/em><\/a><em>.<\/em><\/p>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" data-i13n=\"cpos:8;pos:1\" href=\"https:\/\/finance.yahoo.com\/topic\/personal-finance\" data-ylk=\"slk:Click here for the latest personal finance news to help you with investing, paying off debt, buying a home, retirement, and more;cpos:8;pos:1;elm:context_link;itc:0\" class=\"link rapid-noclick-resp\"><strong>Click here for the latest personal finance news to help you with investing, paying off debt, buying a home, retirement, and more<\/strong><\/a><\/p>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" data-i13n=\"cpos:9;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/\" data-ylk=\"slk:Read the latest financial and business news from Yahoo Finance;cpos:9;pos:1;elm:context_link;itc:0\" class=\"link rapid-noclick-resp\"><strong>Read the latest financial and business news from Yahoo Finance<\/strong><\/a><\/p>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/www.aol.com\/finance\/americans-continue-ransack-retirement-savings-123049819.html\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The ravaging of retirement accounts is on a roll. The number of participants taking hardship withdrawals from their 401(k) was up 13% in the third quarter versus the second quarter, according to a new survey from Bank of America, which tracks about 4 million clients\u2019 employee benefit programs. That tallies up to more than 18,000&#8230;<\/p>\n","protected":false},"author":1,"featured_media":597477,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/u3eoadZ9iGPzcpFPBMgXeQ--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTEyMDA7aD04MDE-\/https:\/\/media.zenfs.com\/en\/aol_yahoo_finance_433\/efcbd652230bc475e1df158173c78802","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-597476","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/597476","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=597476"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/597476\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/597477"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=597476"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=597476"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=597476"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}