A new study by TIAA-CREF shows that nearly one-third of Americans who participate in a retirement plan have taken out a loan from their plan savings, reports Business Wire. Of these, 44 percent who have borrowed against their retirement plan savings regret the decision. Among those who took out a loan, 43 percent have taken out two or more loans.
The survey was conducted by an independent research firm and polled a random sample of more than 1,000 adults nationwide on their retirement plans.
Paying off debt was cited as the top reason for taking out a loan from retirement plan savings (46 percent), yet only 26 percent of respondents said paying off debt was a good reason to take out a loan. The No. 2 reason overall for taking a loan was to pay for an emergency expenditure (35 percent).