Workers Are Draining Their Retirement Accounts at Record Rates. Here’s Why.

Despite booming markets and record account balances, more workers are tapping their 401(k)s than ever. While average 401(k) balances hit a record $167,970 in 2025, hardship withdrawals also reached an all-time high of 6%—triple the pre-pandemic rate. The primary drivers are housing and healthcare costs. Workers are using retirement savings to avoid...