Early 401k Withdrawal Trends & Impacts - 5% of participants took withdrawals this year, indicating potential financial pressures [4] - One in three workers tend to cash out their entire 401k balance when they change jobs [7] - Cashing out happens more with people whose income can be fluctuating, such as gig economy workers and hourly workers [8] Reasons for Early Withdrawal - Top two reasons for early withdrawals are avoiding eviction and paying for medical expenses [2] - People need cash and liquidity due to emergencies [2] Downsides of Early Withdrawal - A 10% penalty is applied on the surface [1] - Taxes must be paid on the money that was previously tax-sheltered [4] - Foregone investment gains over many decades of long-term compounding significantly impact retirement wealth [4] Recommendations - Emphasize the need for an emergency reserve to protect long-term savings [3] - Workers facing a cash crunch should consider financial planning [9] - Having an emergency savings of $2,000 can significantly reduce the likelihood of cashing out and improve savings behaviors [9] - Rebuilding a 401k after withdrawal requires saving and maximizing employer match [11] Positive Trends - Eight out of 10 workers are saving towards their retirement [6] - Workers are saving at the highest rate seen, which is 12% [6]

For many Americans, work can feel like a hamster wheel. No matter how hard they run, it never feels like enough. Americans, on average, say they would need $520,000 a year to feel rich. And the more people earn, the more they say they need to feel comfortable.Americans making under $50,000 felt they needed $157,000 a year to feel comfortable. Those making $100,000 or more said they would need $246,000. When I was in middle school, a song came out called "Mo Money Mo Problems," and I think that that's true.Y ...

even heard this term like revenge saving. What's the deal here. People are getting serious about saving right now.There's a lot of concern about your financial situation, what's happening with the economy. People worried about inflation. They're not splurging like they did after the pandemic.That was revenge spending. Now they want to revenge savings. That's what they're committed to. Committed to not buying more than they need.That low those lowby, no buy challenges you see on social media. That's what the ...