A WSJ analysis from June revealed that a record number of 401(k) holders made early withdrawals in 2024, with over 1/3 citing a foreclosure or eviction as the primary reason for tapping their retirement savings.

"I think we're seeing it mainly because we're still dealing with the effects of inflation over the past several years," said Maureen Paley, a Sacramento-based financial advisor. "And now the current economic environment also includes a lot of uncertainty."

Of note, early withdrawals - those dipping into savings before the age of 59 1/2 - incur a 10% penalty unless an exception applies. 

According to Transamerica, the percentage of workers who have ever taken a hardship or early withdrawal from a 401(k), similar plan, or IRA is highest among Generation Z at 26%. This is followed by Millennials at 24%, Generation X at 17%, and Baby Boomers at 12%.

In the UK, GenX is in a financial panic - with "those who have managed to save for retirement are taking it out again in droves."

This risks making a bad situation worse for Generation X, the cohort aged 45 to 60, many of whom face a substantial pensions shortfall. Not only do they run the risk of a retirement with significantly lower financial security than their predecessors, but a new poll has evidenced a worrying lack of pensions knowhow. -FT

Perhaps this precarious financial situation that younger Americans find themselves in has something to do with data showing that GenZ - particularly men, are shifting towards conservatism. 

A report from Decision Desk HQ (DDHQ) released this week suggested that "Gen Z appears to be charting a different political course than Millennials" and noted that multiple indicators "point to substantial Republican gains among Gen Z." In particular, the report noted that Democratic registration among young men had shrunk compared with that among young women. -The Hill