The growing reliance on 401(k) plans as a source of urgent cash is further evidence of consumer financial stress heading into the 2024 election year.
Despite high GDP and low unemployment, some Americans are clearly facing a cash crunch and struggling to pay the bills.
Bank of America said the number of 401(k) participants taking hardship distributions increased by 27% from the first quarter of this year.
Bank of America found 401(k) contribution rates were steady during the third quarter at 6.5%.
Just under 3% of those age groups are cutting back on their retirement savings.
Persons:
Lisa Margeson, America’s Margeson, “, Gen
Organizations:
New, New York CNN, Bank of America, Bank of, New York Federal, ” Bank, America’s
Locations:
New York