More Americans Tapping Into Retirement Savings as 'Hardship' Withdrawals Rise

Americans are increasingly pulling money out of their 401(k) plans to pay bills, suggesting households are under growing financial strain.

  • A new report shows that 2.3 percent of U.S. retirement plan participants took a hardship withdrawal in the third quarter of 2023, up from 1.8 percent in the third quarter of 2022.
  • Avoiding foreclosure or eviction and covering medical expenses were two of the top reasons given for taking hardship withdrawals.

Inflation continued to be a major concern in the third quarter, with nearly three-quarters of employees indicating that inflation was causing them stress.

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