Record 401(k) Balances Hide Rising Financial Strain for Lower-Income Workers
The average 401(k) account balance reached a record $148,153 in 2024, but the median balance of $38,176 highlights that most workers have significantly smaller accounts. A record 4.8% of participants took hardship withdrawals, primarily for housing and medical expenses, revealing a growing financial crisis among lower-income workers.
Topics: 401(k) balances financial crisis hardship withdrawals income inequality retirement savings