It’s no secret that money is becoming tighter and tighter for families all across the nation, and that fact became even more evident with the release of a new report from Bank of America Tuesday.
The second fiscal quarter of 2023 saw a massive 36% increase year-over-year in the amount of Americans making “hardship withdrawals” from their 401(k) accounts.
Hardship withdrawals are only approved under certain conditions, and those who withdraw much demonstrate both distress and urgency.
“From an efficiency perspective, your 401(k) is the worst place to take money out of in a hardship situation,” Everwell Financial owner Danielle Lucht told ABC News.
Lucht said that, even with the inflation rate decreasing, it will take quite a bit of time for the economy to stabilize.
“I think it’ll take 18 months to maybe 36 months to see inflation really come back down to a level where it’s more comfortable for most Americans… So the concept of how much our debt is going to be costing us, is changing,” she said.
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