- The number of Americans making hardship withdrawals from their 401(k) accounts increased by 36% in the second quarter of 2023 compared to the previous year, according to Bank of America data.
- This increase in hardship withdrawals reflects growing financial distress among Americans due to factors such as high inflation and rising household debt.
- Despite the rise in withdrawals, the average 401(k) balance in the U.S. increased by 9.6% since the end of 2022, indicating some positive growth in retirement savings.
Since 2019, household debt balances have increased by nearly $3 trillion, according to New York Federal Reserve data through the first quarter of 2023.
On Tuesday, the New York Fed reported that US households' credit card debt surpassed the $1 trillion mark for the first time ever. The $45 billion increase in credit card debt helped to drive overall household debt levels to $17.06 trillion at the end of the second quarter.
How much is this. Waldo is in the lower left.
17 of these:
.Those are $100 bills
But enough mind boggling. More people are drawing down what they have but deposits increase.
This means rich people have more money. Again.