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Americans Turn to 401(k) Withdrawals Amid Rising Costs

4/18/2026

22 2 Full Breakdown

Summary

Story summary

Adia Rad, a single mother from Norfolk, Virginia, withdrew from her 401(k) four times in 2025 to cover rising costs.
She had about $10,000 saved and faced a 10% early-withdrawal penalty.
She regrets not waiting to withdraw as expenses, including high gas prices and electric bills, have risen.
Reports indicate more Americans are resorting to hardship withdrawals from retirement accounts due to similar financial pressures.

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Story summary

Adia Rad, a single mother from Norfolk, Virginia, withdrew from her 401(k) four times in 2025 to cover rising costs.
She had about $10,000 saved and faced a 10% early-withdrawal penalty.
She regrets not waiting to withdraw as expenses, including high gas prices and electric bills, have risen.
Reports indicate more Americans are resorting to hardship withdrawals from retirement accounts due to similar financial pressures.