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Story summary
- In 2025, 6% of participants in 401(k) retirement accounts took hardship withdrawals, up from 4.8% in 2024.
- The rise is driven largely by the housing affordability crisis, with many facing eviction or foreclosure.
- Financial experts warn that early withdrawals incur taxes and penalties, undermining long-term retirement savings.
- Policymakers are debating allowing retirement funds for housing down payments, but critics caution this could jeopardize financial security.
