While investors have continued to steadily contribute to their 401(k)s throughout the two-year-long financial crisis and have kept 401(k) loans, hardship withdrawals and cash-outs to a minimum, there was, after all, a sudden surge in withdrawals last year, according to
In fact, investors who borrowed money from their 401(k)s in the first half of the year rose 6% overall, and non-hardship withdrawals by workers 59-1/2 or older still on the job rose 14%, according to Vanguard.
“We speculate that the increase in loans and non-hardship withdrawals is related to the general economic conditions,” Vanguard said.