401(k) Loans Climb 80%

Use of 401(k) loans rose 80% in 2025, while hardship withdrawals more than doubled since 2022, according to a survey of 753 plan sponsors. The increases coincided with persistent inflation and rising everyday costs, which the Plan Sponsor Council of America said are pushing workers to use retirement savings for emergencies. Financial advisers warn that early withdrawals can reduce future retirement funds and suggest considering options such as Roth IRA contributions, health savings accounts or payment plans.

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