Avoid dipping into retirement savings amid COVID-19 pandemic

CHICAGO (WLS) -- Budgets might be tight, but you should avoid using your retirement savings to cover expenses at all costs.

ABC 7 Chicago Consumer investigator Jason Knowles shares money stretching strategies during the pandemic.

Nearly 31 million Americans have dipped into retirement savings to cover expenses during the pandemic, according to BankRate.com, but experts say you should avoid that at all costs.

They said that $5,000 today could be up to $50,000 later.

If you are struggling with bills now, they recommend contacting your lenders to see if they have any forgiveness to offer. You should also make minimum payments on things, like your credit card bills to keep some cash in your account.

If you have already withdrawn from your retirement savings, there is no need to panic. Experts at Bankrate said you can put that money back into your account within three years to avoid any tax hits.