“A record 6% of workers in 401(k) plans administered by Vanguard took a hardship withdrawal last year.” 

“That is up from 4.8% in 2024 and a pre-pandemic average of about 2%.” 

“The top reasons… were avoiding foreclosure and eviction, and paying medical expenses.” 

“The median withdrawal was $1,900.” 

“At the same time, the average 401(k) balance rose 13% in 2025 to a record $167,970.” 

Balances are hitting records while hardship withdrawals hit records. The averages look strong, but the stress is concentrated.