Retirement plan participant loans most occur among the financially vulnerable undermining their retirement security

According to a recent study by Custodia Financial, retirement plan participant loans occur most frequently among the financially vulnerable.  The number one reason cited for taking plan loans is simply to make ends meet, followed by paying off credit card bills and paying for medical expenses.  The data found the average loan amount is fairly low, indicating that plan participants are typically using them for their short-term financial needs. Although 70 percent of the borrowers indicated they understood the ramifications of taking plan loans, in the in-depth interviews with the study participants, it was determined that two-thirds of the participants had significant knowledge gaps.  The attached article offers possible solutions to this issue that is undermining retirement security. Read article here…

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