The Economic Times

Fidelity, AARP warn Americans on 401(k)s: Are hidden risks, early withdrawal penalties, and retirement savings gaps hurting your future wealth?

Fidelity, AARP warn Americans on 401(k)s as new data highlights serious retirement savings risks. The average Social Security benefit is only $2,071 per month today. That is not enough for most retirees. Experts say early withdrawals can cut savings by up to 35% instantly. High taxes, penalties, and lost growth make the situation worse. Many workers still misuse 401(k) plans for short-term needs. Fidelity and AARP stress smarter planning now. Protecting long-term retirement savings has become more critical than ever.