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Plugging leaky 401(k)s; Bill payers for the elderly; Healthy assets

Plugging leaky 401(k)s

More Americans than ever are dipping into their retirement accounts, said Dan Kadlec in Time.com. In 2010, a record 22 percent of 401(k) plans had loans outstanding against them, and an increasing number of those loans are never repaid. A new study estimates that loan defaults deplete retirement accounts by as much as $37 billion a year—a grim cost “given the retirement savings crisis in America.” Since most of these defaults occur because of a job loss, policymakers are considering whether plans should require participants to purchase insurance before they can take out loans on their 401(k)s. The policies, which would guarantee that the loan is repaid if the borrower loses his job because of death, illness, or termination, “may be the best way to protect retirement savers from themselves.”

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