In its “How America Saves 2026” report, Vanguard found that 6% of participants took a hardship withdrawal from their 401(k) account in 2025, up from 5% in 2024. At 36%, avoiding foreclosure or eviction was the most common reason for a hardship withdrawal during the year, up from 35% in 2024. Medical expenses ranked second at 31%, up from 30% in 2024.