Trump says '401(k)s are way up' — but workers are tapping them at record rates

Now, more savers have been taking money out of their 401ks, even as average account balances have seen double-digit gains. New Vanguard data shows that the share of participants tapping their 401k reached a record high in 2025 with 6% taking a hardship withdrawal. That's up from 4.8% in 2024.Now for retirement provider Elite Solutions, the percentage of 401k participants taking hardship withdrawals nearly doubled from February 1st, 2025 to January 1st to January 31st, 2026, rising to 3.8% during that period ...