More than one in four American workers with 401(k) and other retirement savings accounts are using their retirement funds for non-retirement needs.
“In 1980, four out of five private-sector workers were covered by traditional pensions that paid them a fixed benefit based on their salary and length of service once they retired. Now, just one in five workers has a pension…” according to 401(k) breaches undermining retirement security for millions (The Washington Post, Jan. 14, 2013)
Employers today are placing increased retirement risk on working families, who must rely on risky 401k-type investments instead of a defined benefit plan such as a pension.
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Have you ever had to tap into your retirement savings to cover unexpected expenses?