Americans wrecking their retirement plans

U.S. citizens who are drawing down on their workplace retirement account before retirement are exposing themselves to a complicated array of tax penalties, fees and other charges, reports Forbes’ Bill Singer on Broke and Broker Blog.

In addition, tapping into defined contribution savings plans leads to long-term damage to retirement savings.

Using savings meant to be used later in life as all-purpose funds prevents compounding from taking place, which is damaging to retirement planning.

Also read:

Canada vs. the U.S: Does our retirement funding stack up?

Canadians happy, busy in retirement

How much retirement income do you really need?

Insuring seniors costly, but worth it

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.