Inflation Drives Record 401k Withdrawals As Americans Tap Retirement Savings
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Inflation and high prices are forcing more people to withdraw from their 401k retirement savings to make ends meet.
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Financial companies like Fidelity reported record levels of 401k hardship withdrawals in 2022.
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Lower income individuals are particularly struggling with inflation on top of other expenses like student loans.
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People are turning to 401k withdrawals as interest rates have made loans and credit cards more difficult to pay off.
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Withdrawing from 401ks should only be done in specific circumstances, and it comes with a 10% tax penalty.