Both adverse and investment events can trigger early withdrawals from retirement accounts. About 40 percent of retirement savings losses can be linked to these types of events, which include unemployment, the onset of poor health, primary home purchases, and college expenses. Unfortunately, lower-income families less often have retirement savings and more often tap into these savings when faced with life-changing events. The results call for an integrated savings policy that encourages savings for both pre-retirement and retirement needs.
To reuse content from Urban Institute, visit copyright.com, search for the publications, choose from a list of licenses, and complete the transaction.