More Americans than Ever Before Are Dipping into Their Retirement Savings to Make Ends Meet

A record-setting number of Americans are pulling money from their 401(k) plans to cover emergency expenses, The Wall Street Journal reported Thursday, citing data from major investment manager, Vanguard Group.

The proportion of people who pulled from their 401(k) jumped by about one-third in 2022, to 2.8%, up from 2.1% in 2021 and 2% in the pre-pandemic era, according to the WSJ. Vanguard manages roughly 5 million accounts, so the total number of people making withdrawals climbed from roughly 100,000 to roughly 140,000 in 2022, as people both struggled with financial stress ranging from credit card debt to eviction.

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President Trump: ‘No Change’ to 401(k) Retirement Plans

President Trump said Monday he won’t allow Congress to reduce tax-exempt contributions to popular 401(k) savings plans, amid reports that lawmakers are considering such a move. “There will be NO change to your 401(k),” Mr. Trump tweeted. “This has always been a great and popular middle class tax break that…

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