A growing number of Americans are financially unprepared for retirement, with only 1 in 5 workers nearing retirement being financially on track. Despite increased savings and higher 401(k) balances, many Americans, particularly those in their mid-50s, are critically underprepared. Hardship withdrawals from 401(k) plans have surged nearly 40% as savers struggle to save their homes. Vanguard's annual report highlighted that 3.6% of savers used the hardship option in 2023, up from 2.8% the previous year. Experts suggest that while early retirement is changing, Americans need to do more to ensure a comfortable retirement. Super savers tend to have the biggest 401(k) balances, but Americans are still far from the 'magic number' needed for a secure retirement.
Opinion: Hardship withdrawals from 401(k) plans rocket nearly 40% — as savers fight to save their homes https://t.co/7wLF57wird via @MarketWatch
Vanguard said in its annual report on retirement savings that 3.6% used the hardship option in 2023, up from 2.8% the prior year.
K Vanguard Sees More 401(k) Hardship Withdrawals. That May Not Be a Bad Thing. https://t.co/E4s1dkTGCT via @BarronsOnline
Good news: your 401(k) is up, and a new report shows increased savings. But Americans need to do more to get to a comfortable retirement. https://t.co/TtymfvdBoL @CNBC @Vanguard_Group
This is a GREAT piece by @BobPisani -- data pts show how so many are in trouble for retirement. https://t.co/TTfEGlKQDE
Your 401(k) is up, and a new report shows increased savings. But Americans need to do more https://t.co/OFuBCmNep8
Vanguard Sees More 401(k) Hardship Withdrawals. That May Not Be a Bad Thing. https://t.co/m3lZndFfnK
Early retirement is changing — here's what to consider, according to the experts https://t.co/FbxpQvhntq
Hardship withdrawals from 401(k) plans rocket nearly 40% — as savers fight to save their homes https://t.co/T6zObkmxiL
Many Americans in their mid-50s are “critically underprepared” for retirement. @sharon_epperson reports. https://t.co/WV0q6qcA5O
Americans are saving more for retirement, but they're nowhere near the 'magic number' https://t.co/z8kzWgtRDH
Retirement 'super savers' tend to have the biggest 401(k) balances. Here's what they do differently https://t.co/5Y9axF3AXY
Only 1 in 5 workers nearing retirement is financially on track: "It will come down to hard choices" https://t.co/X9t89JQnig https://t.co/P04zhqbXGG