According to Vanguard, hardship distributions are up and that’s not a good sign.
The number of hardship withdrawals per 1,000 savers soared about 40% in 20023 and has doubled since 2021.
The main reason people were raiding their retirement accounts was to avoid losing their homes.
Withdrawals totaled 72 for every 1,000 savers in 2023 or an average of six per month. Fewer than 4% of savers took a hardship withdrawal during the year.
