Mar 11, 2024 - Economy

Charted: Dipping into 401(k)s

Data: Vanguard Group; Chart: Axios Visuals
Data: Vanguard Group; Chart: Axios Visuals

A larger share of 401(k) holders tapped their accounts early for financial emergencies in 2023 than ever before, according to Vanguard.

By the numbers: The pre-pandemic average was about 2%, according to the WSJ, which reported the development.

Reasons for the trend, per WSJ, are increasing financial pressures like groceries and insurance bills.

  • Also contributing is the fact that many 401(k) accounts have done quite well in recent years, giving people more confidence to take a dip.

This story was an excerpt from Axios Closer, a recap on the day's biggest business stories.

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