Many plan borrowers took more than they needed, survey finds
While the people who took loans or withdrawals as a result of Covid-19 are in a better place financially, they feel behind in their saving.
Nearly half (47%) of individuals who took a loan or withdrawal from their retirement plan, a traditional lender or their investments as a result of Covid-19 feel they withdrew more than they needed, according to a survey by Voya Financial.
Nevertheless, 68% of those who did borrow or take a withdrawal agree or strongly agree that they are now in a better place financially.
At the same time, 65% agreed that borrowing from their accounts has put them behind in saving for retirement, and 59% said they wish they had consulted a financial professional before taking a loan or withdrawal.
[More: 401(k) savings went up in 2020, but so did retirement worries]
According to Voya, many individuals have taken actions to get back on track financially, with 38% reducing their overall expenses and 29% reevaluating their monthly budget.
The results are based on a survey of more than 1,000 people 18 and older in the U.S. conducted between March 12 and March 15.
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