Homeowners Tapping Retirement Funds to Cover Debt Needs – NMP Skip to main content

Homeowners Tapping Retirement Funds to Cover Debt Needs

Aug 27, 2019
Photo credit: Getty Images/designer491

A new survey conducted by MagnifyMoney has found more than half of homeowners are making an early withdrawal into their retirement savings funds to pay down housing and personal debt.
 
In a poll of 1,029 adults, 52 percent admitting withdrawing retirement funds early, with 23 percent stating the money was used to help pay down non-medical debt and 17 percent stating they needed the money for a down payment on a home. MagnifyMoney found that 54 percent of Millennial savers have made early withdrawals form the retirement funds, compared to 50 percent of Generation X and 43 percent of Baby Boomers.
 
The new survey follows a recent report published by the Federal Reserve Bank of New York’s Center for Microeconomic Data that found total household debt rose in the second quarter due, in large part, to mortgage balances. During the second quarter, total household debt increased by $192 billion, or 1.4 percent, to $13.86 trillion. This marked the 20th consecutive quarter with an increase in household debt and created a new peak level–the earlier peak of $12.68 trillion was recorded in the third quarter of 2008.

 
About the author
Published
Aug 27, 2019
Zippy Adds Capital For Manufactured-Home Lending Push

The $20 million investment from Saluda Grade will support expansion beyond 27 states and new loan products across wholesale, retail, and community channels

Oct 16, 2026
Inflation Hits 3.7%, Putting Mortgage Rate Relief At Risk

September’s inflation pickup puts recent rate improvements at risk, potentially eroding affordability gains from lower home prices and seller concessions

Oct 14, 2026
PLACE Acquires Ardley, Expanding Push To Turn Existing Borrowers Into New Loans

The latest deal connects borrower retention technology with Maxwell's origination platform and PLACE's real estate network, creating new opportunities for lenders

Oct 09, 2026
Equifax, TransUnion Launch New Tools To Cut Credit Report Costs

Both bureaus introduce ways to purchase credit scores separately from reports, while Equifax reports growing VantageScore adoption and extends $1 pricing through 2028

Oct 09, 2026
Newrez, eXp Realty Form Joint Venture To Target Purchase Business

Revenos Mortgage is set to launch in early 2027, replacing eXp's joint venture with Kind Lending

Oct 08, 2026