Financially stressed workers likely to draw on retirement plans
Financial stress is taking its toll on employees, causing them to partake in rather risky money behavior: tapping into their 401(k) or other retirement savings in an attempt to get back on track.
More than half of workers (54%) who identify as being financially stressed say they will likely use their retirement funds for expenses other than retirement, according to PwC’s 2018 Employee Financial Wellness Survey, out this week. That’s compared to 33% of their colleagues who say they’re not stressed about finances.
“Our survey indicates that the main reason people invade their retirement plans is due to an unexpected expense, emergency and/or to defray medical expenses,” Kent Allison, a partner and national leader, employee financial education and wellness practice at PwC, tells EBN. “Not having enough set aside for an unexpected expense has been the No. 1 cause of financial stress since we started our survey.”
Read More: Benefit News
