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Millions Tapping 401k Retirement Accounts Through Financial Hardship
Squeezed by higher prices and short on cash, more Americans are tapping their 401(k)s for financial emergencies.
A record 2.8% of the five million people in 401(k) plans run by Vanguard Group tapped their retirement savings in 2022 to cope with hardships such as medical bills, eviction or foreclosure, the company said. That is up from 2.1% in 2021 and a before 2020 average of about 2%.
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Weakened Economy 0:00
Energy Crisis 8:09
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