Question: Is there any industry information available on employee utilization of hardship withdrawal provisions?
Answer: The International Foundation’s 2024 Employee Benefits Survey found that utilization of hardship withdrawal provisions averaged 5.6% of participants for 401(k) plans, 4.9% for Roth 401(k) plans and 2.3% for 403(b) plans. In addition, a preview of Vanguard’s How America Saves 2025 report showed that 4.8% of participants used hardship withdrawals when offered in 2024, up from 3.6% in 2023 and 2.8% in 2022. The increase in hardship withdrawals was particularly notable in the second half of 2024, largely due to natural disaster declarations that enable participants to take out money to repair homes following natural disasters.
