Of course, those withdrawals have long-term consequences, which may be one reason why so many workers are worried.
Baby boomers and Generation X are more likely than millennials and Generation Z to fear outliving their savings and investments – 49%, 42%, 36%, and 32%, respectively, according to the findings. Most workers say they simply don’t have enough income to save for retirement, according to the researchers.Experts are worried that a change in the law could lead more workers to raid those savings meant for their golden years.
“If workers know they can get at their money if needed before retirement, the hoped-for behavior is they will contribute more out of each paycheck to these accounts. I fear the public will take Congress up on these liberalized provisions, and go in and out of their retirement plans. The current increase in withdrawals and loans may be an indicator of movements to come,” Parrish said.