Americans Are Pulling Cash From Their Retirement Savings to Pay Bills
- Withdrawals mostly spent on housing and medical expenses
- Average 401(k) balances have barely budged in five years
Photographer: AFP/Getty Images
This article is for subscribers only.
Americans are increasingly tapping their retirement savings to cover housing and medical bills amid higher cost-of-living pressures, according to data released Monday from Fidelity Investments.
Some 2.3% of workers took a hardship withdrawal last quarter, up from 1.8% a year earlier, the data showed. The top two reasons given for the uptick were to avoid foreclosure for homeowners or eviction for renters, and for medical expenses.