RECORD 401(k) WITHDRAWALS SIGNAL FINANCIAL STRAIN
A record share of Americans are tapping retirement savings as financial pressure rises. In 2025, 6% of workers with plans run by Vanguard Group made hardship withdrawals—up from 4.8% in 2024 and about 2% pre-pandemic.
The main…
— First Squawk (@FirstSquawk) March 4, 2026
COLUMBUS, Wis., March 04, 2026 (GLOBE NEWSWIRE) — A record number of Americans are turning to their 401(k) retirement accounts to cover everyday expenses and emergencies, underscoring mounting financial pressure on U.S. households. This warns of Long-Term Retirement Impact as Emergency Taps Reach Historic High
According to recent data from major plan administrators including Vanguard and Fidelity Investments, 6% of 401(k) participants took hardship withdrawals in 2025, up sharply from 4.8% in 2024 and 3.6% in 2023 (both previous records) and 2.8% in 2022, and nearly double the pre-pandemic average of approximately 2%.
Nearly 40% of workers surveyed reported taking a loan, early withdrawal, or hardship distribution from their retirement account, according to reporting by Yahoo Finance. Meanwhile, the Wall Street Journal notes that overall contribution rates remain near historic highs — revealing a growing trend: Americans are increasingly using 401(k)s as both retirement vehicles and emergency safety nets.
The survey also found roughly one in five (20.7%) Gen Zers or millennials who recently bought a home used a cash gift from family to help with their down payment, and roughly 11% used an inheritance. About 18% reported they lived with family or friends to save money for their down payment. However, there are other ways for Gen Zers and millennials to finance a down payment – more than half (56.5%) saved directly from paychecks, more than one in 10 (12.7%) used cryptocurrency to help fund their down payment, and 20.4% sold stock investments. Retirement funds were also siphoned – 12.3% of Gen Z and millennial buyers pulled money out of retirement accounts early, and 10.5% contributed less to retirement.
https://wrenews.com/report-family-money-helps-one-quarter-of-young-homebuyers-with-down-payments/