03.17.25

More Workers Dipped Into Their Retirement Savings Last Year, Vanguard Finds

by: Leo Almazora

A Vanguard report found that 4.8% of defined contribution plan members withdrew funds due to financial hardship last year, up from 3.6% in 2023. The increase comes as more plans incorporate automatic enrollment, expanding access to workplace savings for lower-income workers who may have fewer financial reserves outside of retirement accounts. Despite the uptick in withdrawals, Vanguard noted that loan issuances remained stable and below pre-pandemic levels, suggesting that most participants continue to take a long-term approach to saving.

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