News That Matters

Here's why most Americans tap their retirement savings early

Most people don’t intend to raid their retirement accounts — and that’s just the problem.

to pay off debt or bills, according to a recent report by GoBankingRates.

The other most common reasons cited were to cover a financial emergency or medical expense.

Less than 10 percent said it was to buy a home and just said 3 percent said they tapped their retirement savings to pay college costs.

But for those with little or no savings, a lack of proper investment income and planning leaves many Americans at risk of retiring broke.

Most financial experts recommend stashing at least a six-month cushion to cover anything from a dental bill to a car repair — and more if you are the sole breadwinner in your family or in business for yourself.

GOBankingRates polled nearly 2,000 people who dipped into their retirement funds.

More from Personal Finance:
Americans are way more in debt before retirement than ever before
Here’s how much you need to earn to put your kid through college
What Social Security’s budget woes mean for your retirement benefits

Let’s block ads! (Why?)

Personal Finance

Leave a Reply

Your email address will not be published. Required fields are marked *