For many employees, the pandemic dealt an economic blow to retirement plans, forcing them to work longer than expected or even borrow money from their 401(k)s.
Thirty-three percent of employees withdrew or borrowed from their 401(k) or IRA in 2020, according to a poll conducted by Kiplinger and wealth management firm Personal Capital. About 47% of employees who took a retirement loan say they ended up taking more than they needed, according to research from Voya Financial, and 59% of those who took a loan say they wish they had consulted with a financial professional before doing so.
