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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsSurvey: Most Americans Already Raiding Their Retirement Accounts
Survey: Most Americans Already Raiding Their Retirement Accounts
Preparing for retirement is an undeniably important part of adulting, as younger generations call it. Sure, it isnt exactly glamorous, but enrolling in a 401k or opening up an IRA is sure to pay off down the road when retirement is creeping up. That is, of course, if that money isnt spent beforehand. A surprising new online survey of more than 1,000 Americans has found that 52% have already started spending their retirement accounts.
The survey was funded by MagnifyMoney, and proportioned to equally represent American millennials, baby boomers, and generation Xers.
Of that 52% who already started spending, 23% say they tapped their retirement fund to pay off outstanding debt, 17% said they needed extra money for a down payment on a new home, 11% needed to pay for college tuition, 9% had medical bills to pay, and another 3% listed other reasons.
https://www.studyfinds.org/survey-most-americans-already-raiding-their-retirement-accounts/
As far as age groups, millennials (54%) have dipped into their savings the most, followed by generation X (50%), and baby boomers (43%). Millennials were also the most likely to say that taking money from a retirement account early can be justified under the right circumstances.
The survey also revealed a few more bad financial habits Americans seem to be engaging in more and more. A total of 35% of respondents said they arent saving for retirement, at all. And even among those who are saving, 37% said they only started around the age of 30, and 12% said they started saving at 40 years old.
Mike 03
(16,616 posts)explaining why we can't possibly have a recession.
Wellstone ruled
(34,661 posts)the economy has long since made the downturn. We have heard this B.S. before from Rethug Administrations. Never from a Democratic one.
Mike 03
(16,616 posts)Also, whenever they talk about the consumer they always leave out the part about growing personal debt.
Wellstone ruled
(34,661 posts)with the announcements of sixteen or more Models being discontinued and no new ones being pushed as replacements. Interesting thing with the RV's. Last September and October the Dealers were doing their darnest to clean out their inventories and not Advertising new models as the reason why. Noticed our local Auction for used Cars Trucks and RV's are loaded to the max with units that will go through the rings. That kind of Inventory sitting in their yards are similiar to 2007 time frame.
DiverDave
(4,874 posts)Used it trying to save my house from foreclosure.
I'm never going to be able to retire
ck4829
(34,971 posts)Bradical79
(4,490 posts)A lot of us aren't going to be able to retire, regardless.
Ohiogal
(31,657 posts)King Dumpy says all consumers here are loaded up with cash! There cant possibly be a recession!
FiveGoodMen
(20,018 posts)...and we wouldn't need to hoard money all our lives just so we don't wind up sick and homeless at the end.
But giving some rich guy his fifth home and second yacht is more important to so many people!
SWBTATTReg
(21,856 posts)out of the system and not be accessible for taxation by the elected repug thugs. Seriously, there is talk of dismantling the one thing that some rely on for preparing for their retirement...no 401ks, no IRAs, nothing.
BruceWane
(345 posts)The money in 401ks, IRAs, etc. isn't money being taken out of the system - it's actually money that is much more likely to remain in the system, because it's less accessible and there's penalties.
The money in 401ks/IRAs/etc. is invested by the entities in which they are held. Lots of it goes into the stock market, some of it goes to fund loans.
401ks in particular are basically a never-ending stream of new investment for Wall Street. This is why stocks continue to (generally) rise, even for companies that aren't really performing all that well. Millions of people basically taking money out of every one of their paychecks and handing it over to a fund manager and saying "Here's some MORE money. You MUST go buy some stock with this. Even if the stock market isn't doing so great, even if your fund isn't doing so great. And there's MORE coming next payday."
SWBTATTReg
(21,856 posts)Congress...there's been articles out there on this possibility. And a serious one to boot.
smirkymonkey
(63,221 posts)they are desperate for cash. Most of these are people who could never really afford to contribute in the first place because they didn't have savings to fall back on.
One of my jobs in my early 20's was on a 401K trading desk at a large mutual fund company and it was so tragic to see how many of these people in low paying jobs would have to clean out their 401K's because it was the ONLY money they had. And they would get nailed with taxes and penalties, but they needed the money for emergencies and it was their only resource.
I know people who have been laid off who have cleaned out their entire 401K's because they simply needed money to live on.