Some millennials, Gen Zers plan to tap into retirement savings to buy a home. They ‘really shouldn’t,’ advisor says

PUBLISHED TUE, MAY 21 20241:50 PM EDTUPDATED TUE, MAY 21 20244:48 PM EDT

By: Ana Teresa Solá

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Some young retirement savers say they might raid their 401(k) accounts to buy a home. Doing so, however, could be to their detriment, experts warn.

Nearly one-third (30%) of aspiring homeowners say they plan to withdraw funds from their 401(k) plan to fund a purchase, according to the Real Financial Progress Index by BMO Financial Group. BMO polled 2,505 U.S. adults this spring.

Millennials and Generation Z are more likely than older generations to say they will pull out money from their 401(k), BMO found, at 31% and 34%, respectively. To compare, only 25% of Generation X homebuyers and 16% of baby boomers plan to withdraw retirement funds for a home purchase.LEARN MORE…

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Anastasia Kaufman, GRI,ABR,SFR,CDPE,SRS

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