More Americans are tapping their 401(k)s for financial emergencies, with the percentage of retirement savers pulling money for hardships spiking 24% in the 12 months through Sept. 30, according to new data.
For now, the overall percentage of savers withdrawing money for sudden hardships remains low, rising to 1.3%. And about 60% of that activity came from savers with incomes below $60,000, according to a study by Empower Retirement of 4.3 million plan participants in mostly corporate retirement plans. Still, the increase speaks to the financial stress Americans are under.