Copyright 2010 Associated Press All Rights Reserved Associated Press Financial Wire
August 20, 2010 Friday 4:02 AM GMT
SECTION: BUSINESS NEWS
LENGTH: 113 words
HEADLINE: Fidelity: 401(k) hardship withdrawals, loans up
BYLINE: By DAVID PITT, AP Personal Finance Writer
In the wake of news about a spike in new applications for unemployment benefits comes another potentially troubling sign: A record number of workers made hardship withdrawals from their retirement accounts in the second quarter.
What’s more, the number of workers borrowing from their accounts reached a 10-year high, according to a report issued Friday by Fidelity Investments.
The trends reflect the financial stress many workers find themselves in as the economy struggles to find sure footing, said Beth McHugh, Fidelity’s vice president of marketing insight.
High unemployment and companies cutting back on overtime or overall hours have reduced the take-home pay of many workers.
LOAD-DATE: August 20, 2010