05.28.26

More Workers Are Raiding Their 401(k)s as Average Balances Fall

by: Jessica Dickler

More Americans tapped their retirement savings in early 2026 as market volatility and rising living costs increased financial strain, according to new data from Fidelity Investments. Average 401(k) balances fell 4% to $141,000 in the first quarter, while IRA balances also declined 4%, largely due to stock market losses. The share of workers taking 401(k) loans and hardship withdrawals rose year over year, signaling growing economic pressure. Financial advisors warned that early withdrawals can hurt long-term retirement growth, especially during downturns. Despite the challenges, most savers continued contributing to retirement plans, with average contribution rates reaching a record 14.4%.

Read the full article on CNBC