Workers Raid 401(k)s as Balances Fall Amid Economic Turmoil
Financial pressures, exacerbated by the Iran war and subsequent market volatility, led to a decline in average 401(k) and IRA balances in early 2026. Amid these economic strains, a slight increase in workers taking out 401(k) loans and hardship withdrawals was observed, signaling underlying financial difficulties for many households. Experts caution that tapping retirement accounts, especially during market downturns, can result in significant long-term losses due to taxes, penalties, and forfeited compounding growth, emphasizing the importance of emergency savings.
John Q. Hosedrinker