Retirement Plan Balances Grew in 2020. Did Yours? | Personal Finance | stltoday.com
When the coronavirus pandemic really hit hard in March, millions of U.S. jobs were shed within weeks and a lot of people suddenly saw themselves grappling with extra expenses or lost income. As a result, many people had no choice but to hit pause on their retirement plan contributions to focus on their near-term needs.
Furthermore, a lot of people actually withdrew funds from their retirement savings to cope with the impact of the pandemic. Generally, withdrawals taken prior to age 59 1/2 are subject to costly penalties, but those were waived last year for people experiencing financial hardships related to the pandemic itself.
But in spite of that, Bank of America reports that its employees made progress toward their retirement savings goals. In fact, the average 401(k) plan balance increased from $74,000 in 2019 to $81,000 in 2020.
To be fair, part of that increase could've stemmed from the fact that the stock market had a strong 2020, despite the initial blow the pandemic dealt it in March. And a lot of people may have also continued contributing to …
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