EBRI Issue Brief
How Financial Factors Outside of a 401(k) Plan Can Impact Retirement Readiness
What happens to households with spending “spikes” that lack the income and cash reserves to support spending volatility? This Issue Brief
provides a unique analysis of 401(k) plan participants’ finances by
linking 401(k) plan data with consumer banking data to better understand
how 401(k) participants behave when faced with irregular expenses.
Changes in credit card utilization, 401(k) plan contributions, and/or
401(k) plan loan use were examined after these participants experienced a
significant spending spike.