According to a survey by the Center of Retirement Research at Boston College 7 in 10 seniors 51 to 62 who lost their jobs or had health problems or lost their spouse to either death or divorce had problems resulting in a loss of retirement savings.

Advice from money managers/financial planners and articles in the Wall Street Journal;

When money is tight, it's tempting to dip into your 401(k) or your individual retirement account to pay bills. But unless you've exhausted all other options, you should resist this temptation.

Taxes and early-withdrawal penalties will likely consume up to 30% of the money you withdraw, says James Cox, a financial planner at Harris Financial Group in Colonial Heights, Va. You'll also leave a permanent hole in your retirement savings by reducing the amount of money available for tax-deferred growth.

Ways to use your retirement savings without paying the early-withdrawal penalty:

1. Use the money for health insurance. The IRS will waive early-withdrawal penalties from your IRA if the money is used to pay health-insurance premiums while you're unemployed.
2. If you're 55 or older and leave your job, you can take withdrawals from your former employer's 401(k) plan without paying the 10% early-withdrawal penalty, Cox says. For IRAs, the penalty applies to withdrawals taken before 591/2, unless certain conditions are met. For that reason, Cox says, older workers shouldn't roll their 401(k) savings into an IRA.
3. If you have an IRA and you're under 591/2, you can arrange for penalty-free withdrawals by taking advantage of an IRS rule known as the "substantially equal periodic payments" rule. To avoid penalties, you must agree to take a predetermined amount out of your IRA every year for five years, or until you're 591/2, whichever is longer. You'll still have to pay taxes on the money, and you can't stop taking withdrawals if your financial situation improves.

According to the IRS you may use one of three methods to calculate your withdrawals; all of which are tied to your life expectancy. Consult with your financial adviser or IRA provider for details.