More Americans are Accessing Their 401(k) Before Retirement: What You Need to Know About This Troubling Trend
New data indicates that more Americans are accessing their retirement accounts to make ends meet in recent months. That could be a stern warning sign with important portfolio management implications. It also highlights a few noteworthy lessons that households can embrace to build the best possible financial plan.
One of the obvious conclusions to draw from this news is that consumers are turning to new channels to access liquidity. This suggests that demand for goods and services is still generally strong. However, the public is clearly starting to feel strain induced by tricky macroeconomic conditions.
High inflation rates squeezed consumers in 2021. Prices surged throughout the economy thanks to a potent combination of government stimulus, a rapidly expanding money supply, supply chain disruptions, and other factors. Wages didn't keep up with peak price inflation, eroding consumers' buying power.
Source Fool.com
