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
Trump Taps Former CFPB Deputy Brian Johnson To Lead Bureau

MBA backs the nomination as lenders await clarity on the future direction of consumer finance regulation under the Trump administration

Jun 12, 2026
Trump Names FHFA Director Bill Pulte Acting Director Of National Intelligence

FHFA director will continue overseeing Fannie Mae and Freddie Mac while serving as acting director of national intelligence

Jun 02, 2026
Realtor.com Launches AI Home Search Platform Built With Google

New RealAssist tool combines AI, affordability guidance and Google Maps data to engage buyers before they reach lenders

Jun 02, 2026
Another MLS Challenges Zillow In Fight Over Listing Visibility

Realtracs joins MRED in pushing back on Zillow's listing policies, a battle with potential implications for the broader homebuying and mortgage ecosystem

May 29, 2026
Gas Prices Are Quietly Reshaping Homebuyer Affordability

Rocket Money data suggests rising fuel costs are adding pressure to already payment-sensitive buyers as mortgage rates remain elevated

May 28, 2026
MISMO Targets Costly TRID Fee Cures With New Mortgage Fee Standardization Framework

MBA’s standards organization says inconsistent fee naming still drives costly redisclosures and rework, with fee-related cures affecting more than 30% of mortgage loans

May 27, 2026