Employees participating in 401(k) plans believe that they will need an average of $1.7 million to retire, according to a 2019 Charles Schwab study. For many people, reaching that goal and retiring on time requires decades of contributions with no, or few, withdrawals.
However, Americans’ retirement savings are increasingly threatened by disabilities that temporarily keep employees out of work. Unfortunately, many put their retirement dreams at risk by turning to hardship withdrawals from retirement plans when unplanned disabilities occur and medical expenses pile up.
