Hardship withdrawals hit record high, underscoring retirement risks

Published March 26, 2026 7:00 AM EDT 4 Min Read

Infographic showing record 6% of 401(k) participants took hardship withdrawals in 2025. Source: Vanguard. — Visualization created with AI assistance based on original reporting.

Key Insight: Learn how rising 401(k) hardship withdrawals are shifting retirement and long‑term care planning dynamics.
What’s at Stake: Eroding retirement assets could increase future Medicaid dependency and employer benefits liabilities.
Supporting Data: Vanguard: 6% of 401(k) holders took hardship withdrawals in 2025; median withdrawal $1,900.
Source: Bullets generated by AI with editorial review

More U.S. workers are withdrawing funds from retirement plans ahead of schedule, raising concerns about long-term financial and healthcare security.

Jimmy Nesbitt

Reporter

Jimmy Nesbitt is a reporter at Employee Benefit News, where he covers the evolving landscape of workplace benefits, healthcare, retirement, financial wellness and related policy issues. His career … Read full bio

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