Trump's declaration last week that we are in a "Golden Age Economy" may have been premature. Investment Companies are reporting a record number of people withdrew emergency funds from their 401K's last year to make ends meet. The number of people taking loans doubled from just 3 years ago and is 3Xs the number pre-pandemic.
This is just another clear sign of an economy that is working for the top and crumbling for the middle and bottom.
www.cbsnews.com
A record share of Americans are tapping their retirement savings accounts to cover emergency expenses, according to new data from financial services firm Vanguard.
In 2025, 6% of people enrolled in Vanguard 401(k) plans made so-called hardship withdrawals from their accounts, up from 5% in 2024, according to the company's 2026 report on Americans' savings habits.
The share of workers tapping hardship withdrawals has risen in recent years, reflecting the financial pressure many households face when unexpected bills hit. Hardship withdrawals are permitted by the IRS for a limited number of financial issues, including covering medical care or payments to avoid eviction or foreclosure.
The rising incidence of hardship withdrawals highlights the importance of setting aside money for emergencies, Vanguard's Jeff Clark, head of defined contribution research and the author of the report on savings, told CBS News.
This is just another clear sign of an economy that is working for the top and crumbling for the middle and bottom.
A record share of Americans are taking emergency withdrawals from their 401(k)s
More Americans are digging into their retirement savings for emergency expenses, research from Vanguard shows.
www.cbsnews.com
A record share of Americans are tapping their retirement savings accounts to cover emergency expenses, according to new data from financial services firm Vanguard.
In 2025, 6% of people enrolled in Vanguard 401(k) plans made so-called hardship withdrawals from their accounts, up from 5% in 2024, according to the company's 2026 report on Americans' savings habits.
The share of workers tapping hardship withdrawals has risen in recent years, reflecting the financial pressure many households face when unexpected bills hit. Hardship withdrawals are permitted by the IRS for a limited number of financial issues, including covering medical care or payments to avoid eviction or foreclosure.
The rising incidence of hardship withdrawals highlights the importance of setting aside money for emergencies, Vanguard's Jeff Clark, head of defined contribution research and the author of the report on savings, told CBS News.
