Many plan borrowers took more than they needed, survey finds

Nearly half (47%) of individuals who took a loan or withdrawal from their retirement plan, a traditional lender or their investments as a result of Covid-19 feel they withdrew more than they needed, according to a survey by Voya Financial.

Nevertheless, 68% of those who did borrow or take a withdrawal agree or strongly agree that they are now in a better place financially.

At the same time, 65% agreed that borrowing from their accounts has put them behind in saving for retirement, and 59% said they wish they had consulted a financial professional before taking a loan or withdrawal.

[More: 401(k) savings went up in 2020, but so did retirement worries]

According to Voya, many individuals have taken actions to get back on track financially, with 38% reducing their overall expenses and 29% reevaluating their monthly budget.

The results are based on a survey of more than 1,000 people 18 and older in the U.S. conducted between March 12 and March 15.

[More: Few use CARES Act to tap retirement savings]

The post Many plan borrowers took more than they needed, survey finds appeared first on InvestmentNews.

As our second lead editor, Cindy Hamilton covers health, fitness and other wellness topics. She is also instrumental in making sure the content on the site is clear and accurate for our readers. Cindy received a BA and an MA from NYU.

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