401(k) hardship withdrawals on the rise: How to save for emergencies

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Sat, Mar 15, 2025, 7:00 AM

In 2024, Vanguard found that nearly 5% of 401(k) participants withdrew funds due to financial emergencies, with 35% using them to avoid eviction or foreclosure, 30% for medical expenses, and 16% for home-related costs.

Vanguard head of participant experience Dina Caggiula joins Wealth host Brad Smith to discuss these findings and their implications, highlighting the importance of financial wellness education and alternative savings options to prevent early retirement withdrawals.

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