A growing number of people tapped into their retirement savings accounts last year amid the highest inflation in four decades.
A record number of those who hold Vanguard Group 401(k) accounts, 2.8%, tapped into those and pulled funds out last year, the Wall Street Journal reported on Thursday. That is well above the typical 2% rate before the pandemic and is up from 2.1% in 2021.
The decision to tap into retirement accounts was likely brought about by financial hardship last year and moves by the government that now make it a bit easier for account holders to withdraw the money.
Fiona Greig, global head of investor research and policy at Vanguard, said the high number of withdrawals is “evidence that some families may be feeling the pinch and drawing on their 401(k) balances to relieve that financial stress.”
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