Millennials Are Making This Risky Move With Their Retirement Savings
Retirement is a long time away for most millennials, but sadly many people within this age group are making a risky choice now that could make saving enough for their later years more difficult than it needs to be. That choice: Withdrawing or borrowing money from their 401(k).
A recent report from The Transamerica Center for Retirement Studies found millennials were the most likely of any demographic group to tap into their retirement accounts. In fact, as many as one in three millennial workers has already taken a loan or withdrawn money from their 401(k) or similar retirement plan, or has plans to do so, compared with 15% of Gen Xers and 10% of baby boomers.
And while borrowing or withdrawing from a retirement account may seem like a lifeline for young people coping with the effects of coronavirus, this decision could have far-reaching consequences. Before making it, millennials (and anyone else considering it) need to look at the big picture, including the downsides as well as potential alternatives.
Source Fool.com
