Press Release

Psca Annual Survey Results: Balances, Roth, Hardships, and Loans Increase Significantly

Issued by PSCA [Plan Sponsor Council of America]

Nov. 11, 2026

 401(k) Balances Rise Significantly, at the Same Time More Workers Tapping Accounts 

Hardship withdrawal usage more than doubled in three years and loan usage jumped 80 percent.  

Arlington, VA  — More 401(k) participants are tapping their retirement savings early, even as strong markets pushed account balances sharply higher, according to the Plan Sponsor Council of America’s (PSCA) newly released 69th Annual Survey of Profit Sharing and 401(k) Plans. 

The share of participants taking a hardship withdrawal rose to 3.4 percent in 2025 — the third straight annual increase and more than double the 1.5 percent recorded in 2022. More than a third of plans (36.7 percent) now process hardship withdrawals through SECURE 2.0 self-certification, which may be making withdrawals easier to access.

Loan usage rose as well. The percentage of participants with a loan outstanding climbed to 22.2 percent from 12.4 percent in 2024, while the average loan amount fell to $9,818 from $13,710. 

“Affordability is driving this data. When everyday costs keep climbing, the 401(k) becomes the emergency fund, and more workers are taking smaller loans and hardship withdrawals just to keep up,” said Will Hansen, PSCA’s Executive Director.  

Higher balances provide a cushion

The average account balance for active and terminated vested participants rose 21 percent, to $186,431 from $154,207 — slightly outpacing the S&P 500’s 17.9 percent gain for 2025.

Larger balances give participants more of a cushion and can help buffer the long-term impact of leakage. Still, money withdrawn early stops compounding toward retirement, and unlike loans, hardship withdrawals cannot be repaid to the plan.

“Strong markets gave participants a real boost last year, and those higher balances provide a buffer,” said Hattie Greenan, Director of Research and Communications at PSCA. “But the steady rise in hardship withdrawals and loans tells us some participants are feeling financial strain. It’s a trend plan sponsors are watching.”

Savings behavior holds steady

Though more participants are tapping accounts in a tough economy, for the most part they are continuing to make plan contributions with only slight decreases in participation and deferral rates noted. 

• Eighty-six percent of eligible employees (86.0 percent) made deferrals in 2025, down slightly from 87.4 percent in 2024. 
• Participants deferred an average of 7.6 percent of pay compared to 7.7 percent the year before.  

Roth moves into the mainstream

Roth contributions are now offered by 96.9 percent of plans, and the share of participants making Roth contributions climbed to 24.5 percent from 22.1 percent — an 11 percent increase. Plan sponsors are also expanding Roth features beyond employee deferrals:

• Roth employer contributions more than doubled: 42.4 percent of organizations have added or will add Roth treatment of employer contributions, up from 19.7 percent last year.
• In-plan conversions are growing: 65 percent of plans that allow Roth contributions also allow in-plan Roth conversions, up from 61.0 percent.

“The Roth era is here. SECURE 2.0’s mandatory Roth catch-up made Roth essential for nearly every plan, and sponsors aren’t stopping there. Doubling the number of plans offering Roth employer contributions in a single year is a remarkable shift,” said Hansen. 

Other highlights

• Employer contributions: Employer contributions held steady at 4.8 percent of pay. 
• Super catch-up: 87.1 percent of plans have adopted the SECURE 2.0 catch-up for employees aged 60–63, up from 73.1 percent.
• Automatic features: 66.5 percent of plans use automatic enrollment, and 82.5 percent of those facilitate increasing deferral rates over time.
• Limited take-up of other SECURE 2.0 options: Just 3.1 percent of plans match student loan payments, and 1.1 percent have added a PLESA (emergency savings account).
• Investments: The average plan offers 23 investment options, unchanged from last year. Managed accounts continue to grow and are now offered by 56.3 percent of plans. Standalone in-plan annuities also remain rare, offered by 8.6 percent of plans.

About the survey

PSCA’s 69th Annual Survey of Profit Sharing and 401(k) Plans reports on the 2025 plan-year experience of 753 plan sponsors, with 196 tables covering plan design, contributions, investments, automatic features, loans and withdrawals, and administration. Click here for more information. 

About the Plan Sponsor Council of America

The Plan Sponsor Council of America (PSCA), part of the American Retirement Association (ARA), is a diverse, collaborative community of employee benefit plan sponsors, working together on behalf of millions of employees to solve real problems, create positive change, and expand on the success of the employer-sponsored retirement system. With members representing employers of all sizes, we offer a forum for comprehensive dialogue. By sharing our collective knowledge and experience as plan sponsors, PSCA also serves as a resource to policymakers, the media, and other stakeholders as part of our commitment to improving retirement security for millions of Americans. For more information, visit www.psca.org. 

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