Most Americans Tapped Retirement Savings During the Pandemic
January 7, 2021
When the coronavirus pandemic hit the country, the majority of Americans turned to their retirement savings to get by. A recent survey from Kiplinger’s found that 60% of Americans withdrew money from qualified retirement accounts. Two-thirds of them said they did so to pay for basic living expenses. Nearly a third said they took out more than $75,000, while 58% borrowed between $50,000 and $75,000.
Luckily, provisions in the coronavirus relief bill mean that the majority of these withdrawals will not see early withdrawal penalties, the Americans who turned to these funds may have derailed their retirement plans. A third of the survey respondents said they plan to work longer to make up for the hit their savings have taken.