Hello… Welcome to Employment Crossing News… I’m Evangeline Fabia.
As the nation’s economy continues to worsen, Americans are beginning to dip into their savings accounts, just to survive the financial hardships of unemployment, purchasing a home, medical emergencies and any extra expenses.
A study conducted in 2004 found workers had $31 billion dollars in outstanding 401 (k) loans. That’s five times the amount in 1989. And an average of 12 percent of families with 401(k) plans, borrowed from them in1998 to 2004.
Christian Well, an author of the study says that they don't necessarily pay penalties. But the penalty is that they have fewer retirement savings.
According to the study… A $5,000 loan could cut retirement savings by 22 percent even if the loan is repaid without penalty. And that's assuming the person has a $40,000 salary and is five years into a 35-year career.
For more information… visit us at Employmentcrossing.com. I’m Evangeline Fabia… thank you for watching Employment Crossing News.
http://www.employmentcrossing.com
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