Vanguard research reveals decline in average 401(k) account balances.

The average balance in employer-sponsored retirement contribution plans dropped by over 20% last year, according to Vanguard Group. The average account balance for 401(k)s and 403(b)s was $112,572 in 2022, down nearly $30,000 from the previous year. A growing number of Americans tapped their retirement accounts to cover a financial emergency as high inflation raged. About 2.8% of workers participating in employer-sponsored 401(k) plans made a "hardship" withdrawal in 2022, up from 2% before the pandemic began.