Emergency funds are a ‘security blanket’ for 401(k) savings, Vanguard researcher says. Here’s why

Key Points

Workers with emergency funds of at least $2,000 are less likely to raid their 401(k) accounts, according to Vanguard research.
401(k) “leakage,” such as cashing out an account upon job separation, hurts households’ retirement security, experts said.
Saving even $10 to $25 per paycheck into an emergency fund can make a difference.

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