The Washington Post published an interesting article Monday that showed one in four Americans with 401(k) and other retirement savings accounts are using them to pay for their current expenses. For millions of Americans, they’re using a quarter of the annual $293 billion deposited for retirement for the now.
According to the study by financial advisory firm HelloWallet, the quarter of Americans are using the withdrawals, loans or cash-outs to pay their mortgages, credit card debt and other monthly bills. One-third of these individuals are in their 40s, a group closing in on retirement.
“But millions of Americans, caught between flat wages and high expenses for everything from sending children to college to making home repairs, feel as though they have little choice. The withdrawals have grown substantially in the wake of the financial crisis,” the article stated.
It should be interesting what the United States looks like in the next few decades as the national debt balloons, the unfunded liabilities and expenditures tsunami engulfs the country and the average American has no more money due to a variety of reasons, such as taxes and consumer spending.