Halloween is a time for getting together, carving pumpkins, dressing up, and telling scary stories. This spooky season, let’s discuss some scary facts about money today and how you can avoid becoming a statistic yourself.
1. People can’t afford emergencies
According to a 2022 Consumer Bureau of Financial Protection study, only 37% of Americans have at least one month of income saved in an emergency fund. This increases the likelihood that if an emergency crops up, that the person will need to go into debt or take a loan/hardship withdrawal from their retirement accounts if allowed. When people withdraw from their retirement accounts, it severely impacts their ability to supplement retirement expenses down the road. The SECURE 2.0 act aims to support people starting in 2024 by allowing emergency fund contributions through employers. Check with your employer to see if they offer or plan to offer this benefit so that you can take advantage of it.
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