More Americans are digging into their retirement savings because of financial emergencies. Last year, a record 6% of workers in 401(k) plans administered by Vanguard Group took a hardship withdrawal. That is up from 4.8% in 2024 and a pre-pandemic average of about 2%. The data paint a divergent financial picture of American workers’ finances.
“People are saving more, remaining invested, and being automatically rebalanced in a professional way,” said David Stinnett, head of strategic retirement consulting at Vanguard.
