Record Numbers of Workers Are Raiding Their 401(k) Savings to Cover Financial Emergencies: WSJ

A record share of Americans are taking emergency withdrawals from their 401(k)s

More Americans are digging into their retirement savings for emergency expenses, research from Vanguard shows.

Americans tap retirement funds at record rates as mounting financial stress takes toll

A record number of Americans tapped into their 401(k) retirement savings for hardship withdrawals last year due to financial challenges, new data shows.Vanguard Group reported that 6% of participants in 401(k) plans administered by the firm took hardship withdrawals in 2025, up from 4.8% in 2024.That figure is also well above the prepandemic average of about 2% of 401(k) plan participants per year who made hardship withdrawals from their retirem…

Workers Are Draining Their Retirement Accounts at Record Rates. Here's Why.

Six percent of workers raided their 401(k)s last year, up from 2% before the pandemic, Vanguard data shows.

Americans see major 401(k) balance boost

In 2025, Americans' 401(k) retirement savings rose significantly, with average balances up more than 11 percent year over year

Retirement savings grow, yet more workers take hardship withdrawals

A new report from Vanguard indicates more Americans are taking hardship withdrawals from their employer-provided 401(k) accounts.The report shows that 6% of people with Vanguard accounts took hardship withdrawals in 2025, up from 5% the year before. Vanguard said it is not surprising that these types of withdrawals increased in 2025 because it is now easier for people to request them.Hardship withdrawals are subject to a 10% penalty from the IRS…

Workers Tapping 401(k) Savings at Record Rate

Americans' retirement accounts are looking both stronger and, in the case of a few, more strained. Vanguard says 6% of workers in its 401(k) plans tapped their savings for...