A growing number of Americans are making hardship withdrawals from their 401(k) retirement plans to cover everyday expenses due to high inflation, according to Fidelity data.
The report reveals a 2.3% increase in workers making these withdrawals compared to last year.
Hardship withdrawals incur income tax and possible early withdrawal fees, with the top reasons being foreclosure or eviction avoidance and medical expenses. (Trending: Greta Thunberg Caught on Video Going Full Anti-Semite)
The rise in withdrawals is attributed to high inflation and market volatility impacting Americans’ finances, while credit card debt has also increased significantly.
“Account balances have decreased slightly since last quarter, while withdrawals and loans are inching up, showing the impact economic events such as inflation and market volatility can have on Americans‘ wallets – and ultimately their retirement savings,” the report said.
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