401(k) Hardship Withdrawals Hit A Record 6%

Lucas Juery
Lucas Juery
Portfolio Manager at SWAN Capital •

401(k) hardship withdrawals surged to a record 6% in 2025, tripling historical norms. This sharp increase signals growing financial pressure on American households as more savers liquidate retirement assets for immediate needs.

401(k) hardship withdrawals have climbed to 6% in 2025, the highest level on record. Before 2020, the average rate was closer to 2%, meaning withdrawals are now roughly three times higher than historical norms. This increase suggests that more Americans are tapping into their retirement savings to cover immediate expenses, signaling growing financial pressure on households. Hardship withdrawal rates have become an important indicator to watch when assessing the overall health of American savings.

Source: Yahoo Finance, The Business Week Graphic

This graph was produced by Lucas Juery, CFA, CFPⓇ and is not intended to provide financial advice.

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