'That’s Not Winning': Record Numbers of US Workers Are Raiding Their 401(k)s in Trump Economy
Common Dreams • • business
Key Points:
- A record 6% of US workers with Vanguard-administered 401(k) plans took hardship withdrawals in 2025, up from 4.8% in 2024, primarily to avoid eviction or pay medical expenses.
- The increase in withdrawals coincides with rising debt delinquencies and growing numbers of Americans seeking credit counseling, signaling financial distress despite claims of a strong economy.
- Democrats criticized President Trump's optimistic economic claims, attributing the financial struggles to GOP-led healthcare cuts and tariff policies that have worsened Americans' financial security.
- Senate Minority Leader Chuck Schumer and other Democratic leaders highlighted the disparity between Trump's "golden age" rhetoric and the economic realities faced by many Americans.
- Experts warn that
