Building an emergency fund might just keep your retirement plans on track.
Americans have been putting more into their retirement accounts, with 21 percent of workers saying they are saving more than they were last year, according to a recent Bankrate.com survey. Despite market volatility, 401(k) balances are up almost 2 percent from the first quarter, according to Fidelity data, to an average $88,900. Over the same period, average balances for long-term millennial savers rose to a record high of $92,900.
But not all savers are able to keep up the momentum.
One in 10 workers has taken a hardship withdrawal from a retirement account, according to the FINRA Investor Education Foundation's recent National Financial Capability Study of 27,564 adults. Another 13 percent have borrowed from retirement savings. (See chart below for a breakdown.)