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Early withdrawals from retirement account chip away at savings
The deadline for contributing to an individual retirement account for 2014 is Wednesday. Write the check, and you’ll be taking a step toward setting up a secure retirement. At least that’s the idea. But a recent study from the Center for Retirement Research at Boston College finds that, on average, pre-retirees withdraw 1.5 percent of assets each year from IRAs, as well as employer-provided 401(k) plans. By the time retirement rolls around, the withdrawals reduce total savings by as much as 25 percent. (The study used annual data provided by the Vanguard Group.) Read more…