Tapping into Your Retirement Funds Should be a Last Resort, Say ICMA-RC and NLC
May 30, 2008
With millions of homeowners across the nation facing the crisis in subprime mortgages, many with defined contribution retirement plans – including public sector employees – may be tempted to tap into them for loans and ready cash. But any early withdrawals from retirement savings accounts should only be considered a last resort.
ICMA-RC and NLC are concerned that public sector employees might consider this option and so are working together to raise awareness among local officials about the potential financial pitfalls. ICMA-RC's primary mission is to provide retirement plans exclusively to state and local governments.
"These are challenging times for many Americans who face economic uncertainty," said Gregory Dyson, senior vice president of marketing at ICMA-RC. "But it is important for people to remember that building a secure retirement depends on regularly saving money now and not borrowing against their future. ICMA-RC is pleased to partner with the National League of Cities on this important issue."
The joint effort includes new Web links on both organizations' Web sites that will highlight alternatives available to anyone concerned about their mortgages. Information on saving for retirement, basic financial literacy, links to articles, worksheets, and other resources, including interviews with NLC and ICMA-RC officials, will also be available.
Please visit the following links to find information, tools, and resources regarding this important issue now. To read the full press release, please click here.
- ICMA-RC Reaching Your Dreams Brochure
- ICMA-RC Worksheets and Calculators
- ICMA-RC Budgeting Calculators
- National Save for Retirement Week
- National League of Cities Web site
- Nation's Cities Weekly – A newspaper issued by the National League of Cities; features the above article on the front page.
- NLC Press Room
View online interviews of Don Borut and Gregory Dyson on NLCTV
Direct links to the videos: