Posted on 08/20/2010 4:33:01 AM PDT by Red in Blue PA
In the wake of news about a spike in new applications for unemployment benefits comes another potentially troubling sign: A record number of workers made hardship withdrawals from their retirement accounts in the second quarter.
What's more, the number of workers borrowing from their accounts reached a 10-year high, according to a report issued Friday by Fidelity Investments.
The trends reflect the financial stress many workers find themselves in as the economy struggles to find sure footing, said Beth McHugh, Fidelity's vice president of marketing insight.
High unemployment and companies cutting back on overtime or overall hours have reduced the take-home pay of many workers.
"People tend to be taking home less," she said. "As a result the percentage of individuals initiating hardship distributions is one of the things we're concerned about."
Fidelity administers 17,000 plans, which represents 11 million participants. In the second quarter, some 62,000 workers initiated a hardship withdrawal. That's compared with 45,000 in the same period a year ago.
What's also eye-opening is that 45 percent of participants who took a hardship withdrawal a year ago, took another one this year, McHugh said.
(Excerpt) Read more at finance.yahoo.com ...
Well the rightful owners might as well spend them now before the .gov raids them to pay off the huge, unsustainable debt
Mrs. Prince of Space
A number of his or her clients have blown through their non-qualified and are now tapping the 401k's etc.
They want to hang on to their homes.....
Nope, you ain’t alone. I did the same thing and I just paid off my old loan and will most likely be dipping back into it next week for another.
Same here. Cleared out our fidelity accounts.
FU Obama.
FU Democrats.
The only thing keeping the economy from going into severe depression is the amount of savings Americans had before this recent economic crisis. The so called “jobless recovery” is sustained by people living off their retirement funds. The MSM has covered this up just as it has covered up the fact that the real unemployment rate is around 20%. Wake up America, our country is being destroyed.
The early withdrawal penalty will be a windfall for the feds.
I had to do the same. No real choice to make it to the end of the year. All that hard saving gone. And considering the damage they have done to this economy they should suspend the taxation and penalty on the withdrawals.
I also filed for unemployment for the first time in my life.
damn depressing
Maybe they’re just taking the money out and spending before the gubmit gets it’s grubby mitts on it.
They should permanently suspend the early withdrawal penalty during this time of economic turmoil.
That is only rubbing salt into the wound.
Bookmark
If they did that, I know what I'd do! Say goodbye to the 401K, and hello to an investment (small as it may be) that the government cannot steal.
I’m very tempted to hit my IRAs to fund a business start-up. Retirement seems like a very remote prospect at this point.
I’m very tempted to hit my IRAs to fund a business start-up. Retirement seems like a very remote prospect at this point.
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