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We're Using Our Retirement Savings to Cover Everyday Expenses ...
The author (not pictured) had to borrow from her retirement to pay bills. Natalia Lebedinskaia/Getty Images 2026-04-20T18:12:01.238Z My family of six is struggling to keep up with rising costs and inflation. We've borrowed from our 401(k) and retirement savings to pay bills. Saving money has become nearly impossible despite multiple income streams. In Maine, where I am raising my family, electricity costs have risen exponentially. The average Mainer spends $175 a month on this bill alone — just to keep the lights on. My average electric bill is $300 a month. Oil prices have increased, as have gas and groceries. Middle-class families across the country face similar financial challenges. Prices continue to outpace salaries. For my family of six, this has led to a few changes, and none of them are positive. Not only is it harder to pay bills, but the rising cost of living makes saving and holding onto savings impossible. We took a loan from our 401(k)While our savings have ebbed and flowed, we have always had something. With four children, it was necessary to set aside money. I was able to put away a specific amount and deposit it into my savings account each month.However, since prices have soared, our savings have gone in the opposite direction. If I do manage to eke out a bit of money to stash away, within weeks, our account is drained. Whether it's a pricy trip to the grocery store, rising gas and oil prices, an unexpected expense, or an emergency, savings don't last as long as they used to. Financially, we struggle year-round, often relying on retirement savings to pay regular expenses. Last year, we took a loan from my husband's 401(k) to cover Christmas for our four children. Expenses have also been covered with retirement money. Despite our jobs as a teacher and an electrical shift worker — and with added overtime, freelance writing, and a summer teaching job — we still can't fully meet our expenses.We have no safety netSo now, not only are we worried about living paycheck to paycheck and operating without a safety net, but my husband has to repay the 401(k) loan we borrowed against through paycheck deductions. The scariest part is that it may not be the last time we use this strategy, nor was it the first. I also withdrew funds from my retirement annuity to pay for my daughter's car. We have limited access to public transportation where we live. It was also necessary to have another driver in the family. So, I took $3,500 for the car and added ...
More Americans are tapping 401 (k)s early as household costs squeeze ...
HomeNewsAnalysisPortfolioPremiumComment(1)DNY59/iStock via Getty ImagesA growing number of Americans are withdrawing money from their 401(k) retirement accounts before retirement age as rising living costs and tighter household budgets force difficult financial choices, the New York Times reported Saturday. Six percent of Vanguard retirement planTo ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.
The Reality of Retirement: Americans Postponing Their Golden Years
Cost of Living: Inflation and rising expenses mean that many retirees cannot rely on fixed pensions or savings alone. Healthcare Expenses: Escalating healthcare costs are a significant concern, compelling many to seek employment to cover medical bills.
The 5 Biggest Stealth Costs in Retirement | Kiplinger
Inflation-related costs This stealth cost covers a ton of ground, but retirees routinely cite inflation as one of the most surprising ongoing costs in retirement.
