There's some good news and some not-so-good news on the retirement front from Vanguard.
Americans set aside a record amount of money in their 401(k) accounts last year, according to Vanguard's "How America Saves 2026" report.
But while savings rates are up, so are the number of Americans tapping their 401(k) for emergencies.
Vanguard said 6% of participants made a hardship withdrawal in 2025, the largest share ever and up from 5% in 2024.
"Pressures such as inflation and rising interest rates contribute to increased financial strain among households, and the streamlining of the hardship withdrawal process has made retirement ***** ets more accessible," according to the researchers.
Americans set aside a record amount of money in their 401(k) accounts last year, according to Vanguard's "How America Saves 2026" report.
But while savings rates are up, so are the number of Americans tapping their 401(k) for emergencies.
Vanguard said 6% of participants made a hardship withdrawal in 2025, the largest share ever and up from 5% in 2024.
"Pressures such as inflation and rising interest rates contribute to increased financial strain among households, and the streamlining of the hardship withdrawal process has made retirement ***** ets more accessible," according to the researchers.
1 month ago
