Summary
This report presents findings from a survey commissioned by ADP and conducted by Retirement Insights, LLC, aimed at understanding the financial situations of retirement plan participants, particularly regarding loans and withdrawals from 401(k) accounts. The survey, completed in April 2025, included a national sample of 500 participants. It reveals that everyday expenses and debt significantly impact workers' ability to save for retirement, with 25% of respondents rating their financial situation as poor or uncertain. The report details that 21% of respondents have taken loans and 17% have made withdrawals, primarily for emergency expenses or to reduce debt. The SECURE 2.0 Act of 2022 is mentioned as a legislative change that enhances withdrawal options for participants in emergency situations. The report concludes with recommendations for plan sponsors to improve employee financial well-being by offering more flexible savings options and promoting financial wellness programs.
