Vanguard Group employees take record 401(k) hardship withdrawals in 2025

10 articles · Updated · MarketWatch · May 1

The share reached 6%, triple the roughly 2% annual average before Covid, among workers in Vanguard-administered employer retirement plans.
Withdrawals are typically used for emergencies such as medical bills, avoiding foreclosure or eviction, and a 2022 federal law broadened eligible reasons to include abuse, disasters and terminal illness.
Advisers say stigma, anxiety and economic uncertainty are pushing more Americans to tap retirement savings despite taxes, possible 10% penalties and the risk that underlying financial problems remain unresolved.

As 401(k) balances hit all-time highs, why are more Americans than ever raiding their retirement funds?

New laws let employers offer workers emergency savings accounts. Why are most companies choosing not to?