Raiding Retirement Savings is a Costly Mistake
Christy Bieber explains the importance of retirement savings, including 401k plans, as a necessary supplement to Social Security, which only replaces 40% of pre-retirement income. A recent study from the TransAmerica Center for Retirement Studies noted over 1/3 of workers have accessed their retirement funds early. They’ve done this by taking a 401(k) loan, an early withdrawal, or a hardship withdrawal. She explains how taxes, penalties, and missing out on compounded gains all negatively affect raiding an account early. Full piece here.