401(K) withdrawals for financial emergencies reached a record high in 2023, with 40% for foreclosure prevention and a 3.6% increase over 2022.
Record high numbers of Americans dipped into their 401(K) plans for financial emergencies in 2023, with 40% withdrawing to prevent foreclosure. Vanguard Group's data revealed a 3.6% increase in early 401(K) withdrawals, compared to 2.8% in 2022 and surpassing the pre-pandemic average of 2%. High inflation and shrinking paychecks have led Americans to use their retirement savings for immediate needs.
March 11, 2024
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