Americans Tapping Into Retirement Savings As ‘Hardship’ Withdrawals Rise

A substantial increase in Americans withdrawing funds from their 401(k) accounts to meet essential expenses is indicative of rising financial strain among U.S. consumers.

Fidelity, the nation’s largest provider of 401(k) plans, has unveiled a concerning trend through its latest report—more Americans are resorting to hardship withdrawals and loans from their retirement savings.

According to the report, in the third quarter of 2023, 2.3 percent of U.S. retirement plan participants opted for hardship withdrawals, compared to 1.8 percent in the same period in 2022.

The primary reasons cited for such withdrawals included avoiding foreclosure or eviction and addressing medical expenses.

In addition to hardship withdrawals, there has been an uptick in the number of Americans taking loans from their retirement savings accounts, Zero Hedge reported.

READ MORE: https://www.zerohedge.com/personal-finance/more-americans-tapping-retirement-savings-hardship-withdrawals-rise

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