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.