VII. 401(K) Preserving And you will Borrowing from the bank

Within try, 90 percent out of funds had been repaid, thus providing a loan depleted old age discounts simply for the latest ten % out of participants changing work and you can failing woefully to repay the the loan balances. But really package borrowing from the bank could still dictate advancing years coverage, if it caused users to minimize their ongoing bundle contributions. To evaluate which possibility, i change next to an evaluation of exactly how financing-delivering swayed bundle share costs.

I start off with descriptive statistics contrasting borrowers’ contribution designs 6 months before taking a unique financing and you will half a year afterwards. During the Panel A away from Desk 9 , we see that the mean contribution amount (for everybody money) was $362 monthly prior to taking that loan, and you can $340 immediately after getting that loan. On average, package credit direct users to chop benefits from the $twenty-two four weeks otherwise six percent.