BREAKING: A record 6.0% of workers in Vanguard-managed 401(k) plans took hardship withdrawals in 2025.
This is up from 4.6% in 2024 and has nearly QUADRUPLED since 2020.
Hardship withdrawals have increased for 6 consecutive years, with last year's median withdrawal being ~$1,900.
The most common reasons were avoiding foreclosure or eviction and covering medical costs.
Financial pressure on US households is surging at an alarming pace.