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close video Americans preparing for retirement should get out of target date funds: Webb

Wealth Enhancement Group Senior Vice President Nicole Webb provides insight on building a retirement fund on “Making Money.”

The average balance in employer-sponsored retirement contribution plans plunged more than 20% last year, according to new data from Vanguard Group.

Vanguard, which tracks about 5 million retirement accounts, found 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. 

"Vanguard participants’ average account balances decreased by 20% since year-end 2021, driven primarily by the decrease in equity and bond markets over the year," the report said. 

One-third of account holders actually had a balance of less than $10,000 and about one-quarter held more than $100,000. Just 12% had a balance of $250,000 or higher.

A FED PAUSE LIKELY WON'T HELP STRUGGLING CONSUMERS

Vanguard found 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. (iStock / iStock)

At the same time, 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 so-called "hardship" withdrawal in 2022, according to the report. That marks a major increase from the 2% rate recorded before the pandemic began and is also up from the 2.1% reading in 2021.

Hardship withdrawals allow workers to tap their 401(k) for an "immediate and heavy financial need."

THE HOUSING RECESSION ISN'T OVER YET

Individuals who make these types of withdrawals owe income tax on the money and could be hit with a 10% early withdrawal fee if they are under the age of 59½. However, the penalty can be waived if workers provide adequate evidence that the money is being used for a qualified hardship, such as a medical expense. 

The Bureau of Labor Statistics is expected to release August consumer price index figures on Sept. 13, 2022. (Joe Raedle/Getty Images / Getty Images)

A person who takes a hardship withdrawal also cannot pay it back to their 401(k) and cannot roll that money into another retirement savings account. 

The increase in workers tapping their 401(k)s for emergency purposes comes as they confront high inflation that has rapidly eroded their purchasing power.

The government reported this week that the Consumer Price Index, a key measure of inflation, rose 4% in May from the previous year, the smallest increase in more than two years. While that is down from a peak of 9.1% hit last summer, it remains about twice the Fed's target 2% rate.

Other parts of the report also pointed to a slower retreat for inflation. Core prices, which exclude the more volatile measurements of food and energy, climbed 0.4%, or 5.3% annually.

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Americans are increasingly relying on their savings and racking up credit card debt in order to pay for necessities. 

Household debt hit $17 trillion at the beginning of 2023, according to Federal Reserve data, and a growing number of households fell behind on payments for several types of loans.

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Entertainment

Gregg Wallace speaks out after MasterChef sacking

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Gregg Wallace speaks out after MasterChef sacking

Gregg Wallace has spoken about his sacking from MasterChef after inappropriate behaviour while working for the BBC – but insisted he is “not a groper, a sex pest or a flasher”.

Wallace, 60, has apologised after a report, commissioned by the cooking show’s production company Banijay UK, found 45 out of 83 allegations were substantiated.

In an interview with The Sun, he said: “I know I have said things that offended people… I understand that now – and to anyone I have hurt, I am so sorry.

“I don’t expect anyone to have any sympathy with me but I don’t think I am a wrong ‘un.”

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BBC reputation damaged by ‘serious errors’

MasterChef co-host John Torode also had an allegation that he used an “extremely offensive racist term” upheld, as part of the same investigation.

Torode, who insisted he had “absolutely no recollection” of the alleged incident, has not had his contract for the show renewed.

Wallace has now defended Torode, saying: “I’ve known John for 30 years and he is not a racist.

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“There is no way that man is a ­racist. No way. And my sympathies go out to John because I don’t want anybody to go through what I’ve been through.”

Former MasterChef presenters John Torode and Gregg Wallace. File pic: PA
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Gregg Wallace has defended his former MasterChef co-host John Torode (left). File pic: PA

At one point, Wallace became tearful during the interview when describing the impact of the investigation on his family.

“I have seen myself written about in the same sentence as Jimmy Savile and Huw Edwards, paedophiles and sex offenders. That is just so, so horrific.”

In respect to the specific allegation of unwanted touching, Wallace denied groping a woman and said that, while he was attempting to flirt with her, he did believe the contact it was consensual.

“She gave me her phone number. I considered that to be intimacy. It was 15 years ago. Me, drunk, at a party, with my hand on a girl’s bum,” he said.

He also accepted he had briefly appeared with a sock on his private parts in front of four colleagues in MasterChef studio. But he said his is not a flasher, and people were either “amused or bemused” but not distressed.

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On the broader allegations about using inappropriate language, Wallace accepted the criticism and suggested that some of his conduct could be explained by his autism and his background.

“I know I am odd. I know I struggle to read people. I know people find me weird. Autism is a… registered disability. Just because you can’t see it doesn’t mean it’s not real.”

He also blamed his former career: “I’m a greengrocer from Peckham. I thrived in Covent Garden’s fruit and veg market. In that environment that is jovial and crude. It is learned behaviour.”

Wallace told the newspaper he is now scared to appear in public: “I go out now in a disguise – a baseball cap and sunglasses, I don’t want people to see me. I’m scared.”

On Wednesday, the BBC confirmed a series of MasterChef filmed last year, before allegations against presenters Gregg Wallace and John Torode were upheld, will still be broadcast.

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Politics

25% of young children and pregnant women malnourished in Gaza, charity says, as PM vows to fly critical medical cases to UK

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25% of young children and pregnant women malnourished in Gaza, charity says, as PM vows to fly critical medical cases to UK

A charity has warned 25% of young children and pregnant women in Gaza are now malnourished, with Sir Keir Starmer vowing to evacuate children who need “critical medical assistance” to the UK.

MSF, also known as Doctors Without Borders, said Israel’s “deliberate use of starvation as a weapon” has reached unprecedented levels – with patients and healthcare workers both fighting to survive.

It claimed that, at one of its clinics in Gaza City, rates of severe malnutrition in children under five have trebled over the past two weeks – and described the lack of food and water on the ground as “unconscionable”.

Pic: Reuters
Image:
Pic: Reuters

The charity also criticised the high number of fatalities seen at aid distribution sites, with one British surgeon accusing IDF soldiers of shooting civilians “almost like a game of target practice”.

MSF’s deputy medical coordinator in Gaza, Dr Mohammed Abu Mughaisib, said: “Those who go to the Gaza Humanitarian Foundation’s food distributions know that they have the same chance of receiving a sack of flour as they do of leaving with a bullet in their head.”

The UN also estimates that Israeli forces have killed more than 1,000 people seeking food – the majority near the militarised distribution sites of the US-backed aid distribution scheme run by the GHF.

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‘Many more deaths unless Israelis allow food in’

In a statement on Friday, the IDF had said it “categorically rejects the claims of intentional harm to civilians”, and reports of incidents at aid distribution sites were “under examination”.

The GHF has also previously disputed that these deaths were connected with its organisation’s operations, with director Johnnie Moore telling Sky News: “We just want to feed Gazans. That’s the only thing that we want to do.”

Israel says it has let enough food into Gaza and has accused the UN of failing to distribute it, in what the foreign ministry has labelled as “a deliberate ploy” to defame the country.

‘Humanitarian catastrophe must end’

In a video message posted on X late last night, Sir Keir Starmer condemned the scenes in Gaza as “appalling” and “unrelenting” – and said “the images of starvation and desperation are utterly horrifying”.

The prime minister added: “The denial of aid to children and babies is completely unjustifiable, just as the continued captivity of hostages is completely unjustifiable.

“Hundreds of civilians have been killed while seeking aid – children, killed, whilst collecting water. It is a humanitarian catastrophe, and it must end.”

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Israeli military show aid waiting inside Gaza

Sir Keir confirmed that the British government is now “accelerating efforts” to evacuate children from Gaza who need critical medical assistance, so they can be brought to the UK for specialist treatment.

Israel has now said that foreign countries will be able to airdrop aid into Gaza. While the PM says the UK will now “do everything we can” to get supplies in via this route, he said this decision has come “far too late”.

Read more:
WHO: Gaza faces ‘manmade’ starvation
UN: People in Gaza ‘walking corpses’

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Last year, the RAF dropped aid into Gaza, but humanitarian organisations warned it wasn’t enough and was potentially dangerous. In March 2024, five people were killed when an aid parachute failed and supplies fell on them.

For now, Sir Keir has rejected calls to follow French President Emmanuel Macron and recognise a Palestinian state despite more than 220 MPs signing a cross-party letter to demand he takes this step.

The prime minister is instead demanding a ceasefire and “lasting peace” – and says he will only consider an independent state as part of a negotiated peace deal.

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UK

Trump issues warning to leaders as he arrives in Scotland

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'Immigration is killing Europe': Donald Trump issues warning to leaders as he arrives in Scotland

Donald Trump has landed in Scotland for a four-day trip including high-level meetings – praising Sir Keir Starmer as “a good man” but calling illegal migration a “horrible invasion” that is “killing Europe”.

Crowds gathered at Prestwick Airport in Ayrshire amid a major security operation for the US president’s visit.

Mr Trump told reporters: “I like your prime minister. He’s slightly more liberal than I am… but he’s a good man… he got a trade deal done. It’s a good deal for the UK.”

The pair are expected to discuss potential changes to the UK-US trade deal which came into force last month.

Trump left Air Force One to head to Turnberry, one of his Scottish golf courses. Part of the trip will include the opening of another course in Aberdeenshire, billed as “the greatest 36 holes in golf”.

Trump supporters watch on as a plane carrying US President Donald Trump arrives at Prestwick Airport
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Trump supporters waved as Air Force One landed. Pic: PA

“There’s no place like Turnberry. It’s the best, probably the best course in the world. And I would say Aberdeen is right up there,” the US president said.

Sean Connery helped get me the [planning] permits. If it weren’t for Sean Connery, we wouldn’t have those great courses,” he added.

During the trip, President Trump will also hold discussions with Scotland’s First Minister John Swinney and EU Commission President Ursula von der Leyen, who is keen to secure a trade deal with the US.

President Donald Trump speaks to members of the media after he arrived at Prestwick Airport in Ayrshire, Scotland, Friday, July 25, 2025.(AP Photo/Jacquelyn Martin)
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Donald Trump spoke to reporters after landing at Prestwick Airport, Ayrshire. Pic: AP

Mr Trump told reporters there was “a good 50-50 chance” of an agreement with the EU but added there were “maybe 20 different” sticking points.

EU diplomats say a deal could result in a broad 15% tariff on EU goods and half of the 30% Trump is threatening to impose by 1 August.

A motorcade carrying U.S. President Donald Trump drives to Turnberry, in Minishant, Scotland, Britain, July 25, 2025. REUTERS/Phil Noble
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He travelled to Turnberry, one of his Scottish golf resorts, amid tight security. Pic: Reuters

The US president touched on illegal immigration and gave European leaders a stark warning.

“You better get your act together or you’re not going to have Europe anymore. You got to get your act together,” he said.

“But you’re allowing it to happen to your countries and you got to stop this horrible invasion that’s happening to Europe. Immigration is killing Europe.”

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What do Scots think of Trump visit?

He was also scathing about the installation of wind turbines across the continent.

“Stop the windmills. You’re ruining your countries,” he said. “It’s so sad. You fly over and you see these windmills all over the place, ruining your beautiful fields and valleys and killing your birds.”

Read more from Sky News:
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Domestically, Mr Trump faces the biggest political crisis of his second term in office over his administration’s handling of files linked to disgraced financier and sex offender Jeffrey Epstein, who died in prison in 2019.

He faced another round of questions after stepping off Air Force One.

“You’re making a big thing over something that’s not a big thing. I’m focused on making deals, not on conspiracy theories that you are,” he said.

Mr Trump added that “now’s not the time” to discuss a pardon for Ghislaine Maxwell, Epstein’s imprisoned accomplice.

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Trump in Scotland amid Epstein storm

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While the president’s visit did attract some enthusiastic flag-waving supporters at Prestwick Airport, he is also likely to trigger a number of protests, prompting Police Scotland to call in support from other forces in the UK.

The Stop Trump Scotland group has planned demonstrations on Saturday in Edinburgh, Aberdeen and Dumfries.

About 70% of Scots have an unfavourable opinion of Mr Trump, while 18% have a positive opinion, an Ipsos poll in March found.

Mr Trump is staying at his Turnberry property on Scotland’s west coast this weekend, before travelling to Aberdeenshire on Monday, where he will open a second 18-hole course.

He is due to return to the UK in September for a state visit hosted by the King – the first world leader in modern times to undertake two UK state visits.

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