Understanding the Mindset of Participants Who Take Loans

“Most participants tend to be under financial stress when taking a loan from their 401(k), so the thought of repaying it becomes an afterthought that later adds to their stress, according to a new study. 

Commissioned by Custodia Financial, Greenwald & Associates conducted a survey of 500 plan participants who have taken at least one plan loan and performed in-depth interviews with a subset of the participants to better understand the context around loan-taking, participant education and loan defaults.” Click here to see survey results.

Source: NAPA National Association of Plan Advisors