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Story summary
- In 2026, Vanguard reports 6% of workers with 401(k) plans took hardship withdrawals, the highest level on record.
- Many withdrawals go to urgent needs such as rent and medical bills rather than discretionary spending.
- As a consequence, employers offer emergency savings accounts linked to retirement plans.
- However, these accounts are slow to gain traction.
- Young and lower-income workers face ongoing financial strain, indicating retirement savings may not cover immediate needs.
