Business
Economic hardship forcing more African Americans to tap into retirement savings
Nest eggs are supposed to be there for when you retire. But it seems that many African Americans are dipping into their retirement savings prematurely.
According to a new study, African Americans are more likely to withdraw money from their 401k plans before they retire. The study, done by Aon Hewitt, the human resources division of Aon Corp., and Ariel Education Initiative, a nonprofit affiliate of Ariel Investments, LLC., found that withdrawals were based on hardship.
“Generally speaking African Americans have not been able to save a rainy day fund. The only fund they seem to have is their retirement, when an emergency arises the retirement is the easiest to access,” says wealth management coach Anita R. Johnson, Anita R. Johnson & Associates.
