Vanguard 401(k) Hardship Withdrawals Hit Record 6.0% in 2025
The source says the share of workers in Vanguard-managed 401(k) plans taking hardship withdrawals rose from 4.6% in 2024 and has increased for six consecutive years.
Fact Check
The primary data point (6.0% in 2025) and the trend (six consecutive years of increases) are directly confirmed by financial news reporting on Vanguard's annual 'How America Saves' data. The minor discrepancy in the 2024 figure (4.8% vs 4.6%) does not undermine the central claim of the 2025 record.
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Summary
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Terms & Concepts
- 401(k) plan: A U.S. employer-sponsored retirement savings account that lets workers invest for retirement with tax advantages.
- Hardship withdrawal: An early withdrawal from a retirement account for an immediate and heavy financial need, typically subject to specific plan rules and possible tax costs.