Hard times pushing people to raid their 401K's
Story By: Bea Karnes
Source: KOAA
While I was at work yesterday, the price of gas at the Loaf 'N Jug near my house jumped 14 cents a gallon. That means the next time I fill-up it'll cost me an extra $2. This is just one example of how prices are skyrocketing.
Been to the grocery store lately? The price of a bushel of wheat has doubled in the past year, meaning the cost of everything from bread to pasta has jumped. A gallon of milk--take out a second mortgage.
This price pinch has people robbing from their future just to get by today. More and more consumers are raiding their 401k accounts to pay off mounting debts. Retirement plan administrators say they've seen double digit spikes in hardship withdrawals and 401k loan requests. Those administrators warn that people are putting their retirement in jeopardy.
But consumers slammed by inflation report that they have no choice. They have to choose between paying bills now, and having more for retirement later.
