THE IMPACT OF EARLY WITHDRAWAL OF FUNDS AND THE EFFECTS OF LOW INTEREST RATES WILL HAVE A MAJOR IMPACT OF THE FUTURE PLANS OF MILLIONS...
Most people know they can withdraw funds from their IRA, penalty free, after the age of 59 ½ (earlier for certain exceptions). And, most people have no plans to do so. After all, the money you put into an IRA is for “retirement,” after the age of 65.
According to BloombergBusinessweek, however, a report by the Employee Benefit Research Institute found that 48 percent of people, 61 to 70 in the bottom half of income distribution took funds out of their IRAs during the period from 2002 to 2010. Of those in the top quarter, income-wise, 29 percent of 61 to 70-year-olds pulled IRA funds.
The amount taken out was substantial. High-income earners withdrew 12 percent of total funds, while those at lower income levels took out 17 percent of the money they had been saving for retirement.
No comments:
Post a Comment