08/22/2010 // Boston, Massachusetts, US // TiffNews10 // News Desk
Boston – A higher number of workers are making withdrawals from their retirement funds due to the economic downturn. As reported by Reuters, a recent survey by Fidelity Investments shows that the numbers have significantly increased for workers who borrowed from their 401(k) plans, with many withdrawals taken out for things such as mortgage payments or college tuition.
Beth McHugh, a Fidelity vice president, is quoted in the report as stating of the record numbers, “People have been looking to their 401(k) plans as a source of relief to help them meet financial hardships… For many individuals that is their primary savings vehicle.”
Nevin Adams, editor at plansponsor.com, a retirement-planning industry focused website, is further quoted as stating, “Unemployment benefits have been running out for people, and it’s possible they’re seeing a double-dip of withdrawals from people trying to make ends meet.”
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