Trending Now - Record 401(k) Withdrawals Amid Economic Volatility

WHO:

President Trump

Michael Shamrell, vice president of workplace thought leadership at Fidelity Investments

Rep. Mike Levin (D-Calif.)

Rep. Brendan Boyle (D-Pa.)

Senate Minority Leader Chuck Schumer (D-NY)

Andrew Bates, former senior deputy press secretary for President Joe Biden

Ann Larson, co-founder of Debt Collective

Vanguard Group

WHAT:

Average 401(k) balance rose by 11% to $146,100 at year-end 2025.

Number of investors with $1 million or more in their retirement accounts hit a new high.

6% of 401(k) plans administered by Vanguard took a hardship withdrawal in 2025, up from 4.8% in 2024.

Average savings rate for long-term savers was 14.2%.

Average employee contribution rate was 9.5% of gross income, with an average employer match of 4.7%.

IRA contributions increased by 25% from 2024.

Total contributions to IRAs were up 23%, marking a record high for contributions made between the end of September and year-end 2025.

Gen Xers increased their contributions by 25% year over year.

WHERE:

United States

Data drawn from Fidelity's defined contribution plans at various companies and nonprofits nationwide, with over 40 million participants and 18.9 million IRA accounts.

WHEN:

Year-end 2025

2025 (for various statistics and events)

2024 (for comparative statistics)

WHY:

Hardship withdrawals were primarily for avoiding eviction or paying off medical expenses.

Increased hardship withdrawals noted amid rising debt payments and financial insecurity among Americans.

Criticism from Democrats regarding Trump's economic policies and healthcare cuts contributing to financial struggles.

HOW:

Consistent retirement savings contributions from employees and employers helped boost overall retirement savings.

Data from Fidelity Investments and Vanguard Group used to analyze retirement account trends and withdrawals.

At year-end 2025, the average 401(k) balance rose by 11% to $146,100, with a record number of investors now holding over $1 million in their retirement accounts. However, hardship withdrawals from 401(k) plans administered by Vanguard increased to 6%, up from 4.8% in 2024, as many Americans faced financial insecurity and rising debt payments. This data, drawn from Fidelity's defined contribution plans and involving over 40 million participants, highlights the impact of consistent contributions from both employees and employers on retirement savings.