While millions of workers used money from their retirement savings to pay expenses during the Great Recession, African Americans and Hispanics dipped into their 401(k) plans at a much higher rate.
The rise in 401(k) withdrawals, loans and cash-outs among African Americans and Hispanics represents a major setback for their long-term retirement security, says Mellody Hobson, president of Ariel Investments, co-sponsor of a survey on the recession’s impact on retirement plans.
Makes the heart sad. Read it all–KSH.
If the savings of the poor are being hurt, then governments need to watch out. The poor don’t have much influence, but they are many.