The Defined Contribution Institutional Investment Association has issued a report calling on employers to limit leakage from 401(k) plans, “Plug the Drain: 401(k) Leakage and the Impact on Retirement.”

Cashouts, hardship withdrawals and loans from defined contribution plans reduce by 14 percentage points the probability that low-wage participants will be able to replace most of their income in retirement after 31-40 years of plan eligibility.

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