Americans continue to ransack their retirement savings, survey finds

The ravaging of retirement accounts is on a roll.

The number of participants taking hardship withdrawals from their 401(k) was up 13% in the third quarter versus the second quarter, according to a new survey from Bank of America, which tracks about 4 million clients’ employee benefit programs.

That tallies up to more than 18,000 plan participants, the highest level in the past five quarters since Bank of America started tracking this data, and up 27% compared to the number of withdrawals during the first three months of the year.

To be clear, while these numbers have ticked up, they are still a very low percentage of overall plan participants.

Taking a loan from retirement savings is undeniably a quick cash move during uncertain times, but consequences exist.

“In looking at our data across 401(k) plans, economic hardships continue to be a factor,” Lisa Margeson, managing director, Retirement Research and Insights Group at Bank of America, told Yahoo Finance.

“While there could be several factors at play, the economic environment, following a year of high inflation and the rising cost of living, could be influencing this ongoing trend.”

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