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Record Numbers of Workers Are Raiding Their 401(k) Savings to Cover Financial Emergencies: WSJ
Hardship withdrawals hit a record 6% and 19.4% of workers took 401(k) loans in 2025 amid financial strain, Vanguard and Fidelity data show.
- Wednesday, Fidelity Investments reported the average 401 balance rose 11% in 2025 based on an analysis of nearly 25 million accounts.
- Market data show equity gains powered results, with the S&P 500 up 16% and the Nasdaq jumping 20%, while the average 401 contribution rate stood at 14.2%.
- On the highest end of the balance spectrum, 665,000 $1 million-plus accounts ended last year, with participants averaging 25 years of saving and Gen X holding 60.3% of these accounts.
- Many savers tapped their accounts, with roughly 6% taking hardship withdrawals and 19.4% holding loans in 2025, while President Donald Trump said last month, "Since I took office, the typical 401 balance is up by at least $30,000."
- Vanguard's report showed retirement account averages rose 13%, with the average across all plans $167,970 and accounts with at least 15 years of saving outperforming, while the S&P Aggregate Bond Index gained 2.91%.
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Total News Sources15
Leaning Left4Leaning Right0Center10Last UpdatedBias Distribution71% Center
Bias Distribution
- 71% of the sources are Center
71% Center
L 29%
C 71%
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