The Daily Money: Why more people are raiding retirement accounts

More people are making hardship withdrawals from retirement accounts to cover emergency medical expenses or to avoid losing a home.

Advertisement Read in browser Read in browser The Daily Money ALL THE MONEY NEWS YOU NEED TO KNOW Thu Oct 26 2023 More people are making hardship withdrawals from their 401(k) accounts, raiding retirement funds to cover emergency medical expenses, or to avoid losing a home. Hardship withdrawals from Fidelity Investments 401(k) accounts have tripled in five years, according to a report from the investment firm, Daniel de Visé reports. The share of plan participants withdrawing funds rose from 2.1% in 2018 to 6.9% in 2023. "It's a big problem, and it's a growing problem," said Kirsten Hunter Peterson, vice president of thought leadership at Fidelity. Vanguard reports that hardship withdrawals have doubled in a four-year span, from a monthly rate of 2.1 transactions per 1,000 participants in 2018 to 4.3 in 2022. More people are making hardship withdrawals from their 401(k) accounts. Getty Images The nation's economy is on fire The U.S. economy shifted into a higher gear in the third quarter as a surge in consumer spending offset a dip in business investment, the fastest pace since late 2021, when the nation was climbing out of the COVID-induced recession. The nation's gross domestic product, the value of all goods and services produced in the U.S., expanded at a seasonally adjusted annual rate of 4.9% in the July-September period, the Commerce Department said Wednesday. 📰 More stories you shouldn't miss 📰 Sober October? Sales spike shows non-alcoholic beer, wine are on the drink menu year-round Bud Light and UFC Bud Light becomes the official beer of UFC as Anheuser-Busch looks to recoup revenue drop California winner California man wins $82 million from state's jackpot, largest winner in more than a decade 🍔 Today's Menu 🍔 Have student loans? Want free pizza? Dominos is giving away $1 million worth of pies. Each weekday, The Daily Money delivers the best consumer news from USA TODAY. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you. Salmonella outbreak in 22 states tied to recalled Gills Onions products Gills Onions voluntarily recalled their branded fresh diced onions because of the potential health risk. READ MORE Advertisement Bublé's blend: Singer Michael Bublé debuts new whiskey brand Michael Bublé's Fraser & Thompson North American Whiskey, made at Kentucky's Heaven Hill Distillery, blends Canadian whisky and American bourbon. READ MORE Georgia woman receives $3M settlement from Dunkin' over coffee burns A 70-year-old woman was visiting a Dunkin' in Sugar Hill, Georgia to purchase a cup of coffee when the accident occurred. READ MORE Victoria's Secret releases adaptive line for people with disabilities Victoria's Secret's adaptive collection was made with accessibility in mind, with features like sensory-friendly fabric and convertible straps. READ MORE Barbie releases dolls inspired by 'Ted Lasso' show on Apple TV+ You can get a Barbie doll inspired by Apple TV+ show "Ted Lasso" for $50. Mattel made Ted Lasso, Keeley Jones and Rebecca Welton into dolls. READ MORE UAW, Ford reach a deal? See details of the tentative deal to end strike UAW strategically targeted all Detroit Three automakers for a 2023 labor contract, and Ford is the first to get a proposal done. READ MORE Burnout and deadly errors: America's broken pharmacy system in revolt Deteriorating working conditions inside the nation's largest pharmacy chains have put patient safety at risk and plunged the profession into chaos. READ MORE How to spot the signs of fake AI on the internet Don't look now, but artificial intelligence, or AI, fakes are all over the internet. Here's how to find out if the site is real. READ MORE Apple to raise prices for Apple TV+ and other Apple subscriptions Apple announced Wednesday that all flagship services like Apple TV+, Apple Arcade and Apple One will cost more. READ MORE Taking an Uber in Phoenix? Why your next ride may not have a driver While Uber is offering rides in self-driving cars in other markets, this launch with Waymo is the first without a human driver behind the wheel. READ MORE Advertisement Sign up for the news you want Exclusive newsletters are part of your subscription, don't miss out! We're always working to add benefits for subscribers like you. SEE ALL NEWSLETTERS ➔ SEE ALL NEWSLETTERS ➔ Newsletters   |    eNewspaper   |   Crosswords Follow Us Problem viewing email? View in browser Unsubscribe  •  Manage Newsletters  •  Terms of Service  •  Privacy Policy/Your California Privacy Rights  •   Privacy Notice  •  Do Not Sell My Info/Cookie Policy  •  Feedback