U.S. retirement savings accounts dwindle
It may not surprise you that a soaring unemployment rate is forcing many Americans to tap into their retirement savings account in order to survive. The current unemployment rate sits at 10 percent of the population.
In today’s beaten-down U.S. economy, most people can’t turn to savings, big raises or a home-equity loan to escape the financial squeeze. They are casualties of the recession. With the recent falls in the stocks and bonds people’s 401(k) retirement savings account have also taken a beating.
Fidelity Investments recently released the results of a study on retirement savings accounts in a special report. According to Fidelity Investments, by the second quarter of 2010, the number of loans from 401(k) accounts reached its highest point in 10 years. Comparing the second quarter of 2009 to the second quarter of 2010 reveals that loans against retirement savings accounts increased by 2 percent from 20 percent in 2009 to 22 percent in 2010. The average loan against a retirement savings account is $8,650.