Americans are forced to raid retirement savings during coronavirus pandemic
The latter group is more likely to need to dip into all types of savings to cover basic expenses, she said.To that point, 32% of people pulled at least $100 from savings accounts in August — more than any other month in 2019 or 2020, and double the share from April, according to a recentBut consumers may be forced to pull out money at a time when U.S. retirement savings are already meager.
While pulling from retirement savings is regrettable, especially for workers in their 50s and 60s nearing retirement age, it may be largely unavoidable if other options aren't available, Brobeck said.There's also less of a financial disincentive to pull money from a 401 plan or individual retirement account now due to rules enacted under the federal CARES Act relief law.
Savers adversely affected by the coronavirus can withdraw up to $100,000 from these accounts in 2020 without the typical 10% tax penalty. More than 78,000 individuals with 401 savings at Vanguard Group took a coronavirus distribution as of May 31. On average, savers withdrew 60% of their 401 plan account. The typical saver withdrew $10,413,
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