Almost one-third — 31% — of full-time workers have taken a loan or made an early withdrawal from their 401(k) or IRA account, according to a study from the Transamerica Center for Retirement Studies.
This 'leakage' from tax-advantaged vehicles that encourage savings "can severely inhibit the growth of participants' long-term retirement savings," the study said, adding that from a policy perspective these early withdrawals should be discouraged.
Other survey findings confirm several common sense assumptions about savings and retirement: higher income workers save more, are more prepared for retirement and are more likely to use a financial adviser.
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Still, even among higher earners, savings seem inadequate for the expected longevity of today's workers. Those with an annual household income of $100,000 or more have saved $222,000, compared with the estimated median savings of $50,000 in all household retirement accounts and just $3,000 among those earning less than $50,000. College graduates have saved $160,000, compared with only $23,000 among nongraduates.
The survey found that only 65% of workers are offered a 401(k) or similar plan by their employers, including 71% of full-time workers and just 45% of part-time workers.
The report suggested expanding access to workplace retirement plans and encouraging wider adoption of automatic enrollment by retirement plan sponsors to increase participation rates among workers.
IRAs now hold nearly twice the assets of 401(k) plans — and most of that money didn't arrive through annual contributions.
A new survey finds that many women prioritize financial security but continue to leave savings in accounts that may not keep pace with inflation.
Roundhill, Bitwise and GraniteShares funds remain on hold while the agency weighs how novel ETFs should be regulated.
"Shares of alternative assets managers have lagged this year as investors grow wary of private-credit exposure."
The fintech platform is touting a new AI-free Planning Observations feature, which draws on IRS tax records to uncover opportunities for advisors.
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.
