Research Finds That Few Workers Take Participant Loans

A recent report, “Many Have Access to 401(k) Loans, Few Have Outstanding Balances” indicates that most participants do not take loans from their retirement plans. The report indicated that:

“While most 401(k) plan participants are able to take a loan from their 401(k) account, relatively few do—and this has been a consistent pattern that has held for nearly two decades. According to an analysis released by the Employee Benefit Research Institute (EBRI) and the Investment Company Institute (ICI), 87 percent of participants in the 2012 EBRI/ICI 401(k) database were in plans offering loans at year-end 2012. Only 1 in 5 (21 percent) of those eligible for the loans had one outstanding.”

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