Column: Loans Could Drain US Retirement Plans by $2.5 Trillion

Column: Loans Could Drain US Retirement Plans by $2.5 Trillion
Retirement plans of seniors are being tapped to play for their children's college funds, according to a new study. Photos.com
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CHICAGO—Americans could dig a $2.5 trillion hole in the country’s retirement system as they fail to pay back loans taken from workplace retirement plans over the next 10 years, according to a new study from Deloitte Consulting.

The problem is called “leakage”—borrowing from a 401(k) plan without repaying the money or paying it back so slowly that it disrupts growth.