The Reason Roughly Half of Americans Would Take a Retirement Plan Withdrawal -- and Why It's Problematic
Healthcare is a burden for people of all ages, and covering it is easier said than done. In fact, Americans struggle so much with medical costs that they're the No. 1 reason U.S. adults are forced to file for bankruptcy.
But new data from TD Ameritrade reveals that the high cost of medical care may be driving people to make a very poor decision: withdrawing funds from retirement savings. A good 49% of Americans across all age groups say they'd likely go that route if faced with healthcare expenses. If you're thinking of doing the same, you should know that you may wind up sorely regretting it after the fact.
The purpose of socking money away in an IRA or 401(k) is to ensure that you have enough income to pay the bills in retirement. But if you withdraw funds from one of those accounts before your senior years roll around, you'll have less money available to you later in life, when you really need it.
Source Fool.com
