Reported 26 days ago
The Vanguard Group reports a record high of 4.8% of workers making early 401(k) withdrawals in 2024, largely due to financial emergencies like evictions and medical expenses. While these withdrawals can provide immediate cash relief, they come with penalties, tax implications, and the risk of losing long-term investment gains. Although the rise in withdrawals suggests financial strain for some Americans, it is noted that more people are actively saving for retirement, indicating progress in the overall retirement system.
Source: YAHOO