Employees continue to borrow from their retirement savings and they may not even plan to repay the loan. One-fourth of Americans have prematurely dipped into their retirement dollars according to a Wall Street Journal Online/Harris Interactive Personal Finance Poll. Furthermore, nearly one-third of those who withdraw funds say they cannot pay them back.
The most common reasons for premature retirement savings loans are that a family member lost a job or money was needed for a down payment on a home. Despite these discouraging findings there are several high points from the survey. Adults employed full-time feel the least pressure to withdraw funds prematurely, with nearly 70% of those actively planning for retirement never having done so. The survey also reveals younger workers' awareness about saving for retirement has improved.
"On average, those who are planning for retirement began to do so at age 32. Each subsequent generation seems to be increasingly aware of its need to begin retirement planning as early as possible," says Peggy Lebenson, senior VP for Financial Services at Harris Interactive.
Among the 90% of U.S. adults who plan on retiring, most continue to contribute to their 401(k), and an IRA or invest in the market, according to the survey.
