While 401(k) balances are growing, an increasing number of retirement savers are using their retirement accounts for financial emergencies.
- A new survey published by the Transamerica Center for Retirement Studies finds that 83 percent of U.S. workers are saving for retirement, but 37 percent admitted to tapping into their retirement accounts, including 31 percent who took out a loan and 21 percent who took an early and/or hardship withdrawal.
- This coincides with data collected by Vanguard Group, which found a record 4.8 percent of its account holders took early withdrawals last year.
By the numbers: Vanguard says about 35 percent of those who took a hardship distribution last year did so to avoid foreclosure or eviction, down from 39 percent in 2023.
- About 16 percent used it to purchase or repair a home.
- The median withdrawal was $2,200.
