New data from Fidelity Investments indicates that Americans are still using retirement balances to supplement financial needs. The average 401(k) balance rose to $146,400 in 2025, an increase of $14,700, or 11%, year over year, according to Fidelity. Individual retirement accounts also saw an increase in borrowing activity. However, the number of hardship withdrawals has risen, with roughly 6% of workers taking such a step forward. The most common reasons for these withdrawals were preventing foreclosure or eviction, followed by medical expenses. Despite these increases, some investors are seeking ways to capture market momentum.