One of the other points the article made was the egregious cost of funds for tapping into the 401k. In most instances, you are paying 30 – 40% to access the funds (getting $6 to $7 for every $10 withdrawn), due to fees and penalties.

It also pointed out that the people using the funds are, in essence, depleting their retirement funds and thus are lowering their own future standard of living. I think if there was ever a question as to the average American’s addiction to debt and consumer spending, this should answer it.