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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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Bech Senior Bowl MVP month after brother’s death

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Bech Senior Bowl MVP month after brother's death

TCU wide receiver Jack Bech was selected MVP of the Senior Bowl on Saturday, catching the winning touchdown pass a month after his brother died in the pickup truck attack in New Orleans.

On fourth-and-goal late in the final quarter, Bech caught a 2-yard touchdown pass from Memphis quarterback Seth Henigan to give the American Team a 22-19 win over the National Team in Mobile, Alabama.

Bech’s older brother, Tiger, was a former All-Ivy League kick returner for Princeton and was among those killed in the terror attack in New Orleans’ French Quarter district on New Year’s Day.

Bech wore his brother’s No. 7 during Saturday’s game, and the clinching touchdown came with seven seconds remaining.

“Man, it’s simple: My brother has some wings on me,” Bech told NFL Network. “He gave them to me, and he let that all take place. My Lord and savior, Jesus Christ. Tiger. Nothing else but them. They’re the reason I did what I did today. I attribute it all to them.”

Bech had 62 catches for 1,034 yards and nine touchdowns last season for TCU.

The week leading up to Saturday’s all-star game and the Senior Bowl itself represented opportunities for Bech to showcase his talents ahead of April’s NFL draft.

“It’s been surreal just to be able to come and take place in this game,” he said. “It’s a goal that you set for yourself. But if I had the option that if I came here, had the worst week ever, ruined my draft stock and that means I could give my brother a hug right now, you know I would take that.

“On the flip side, I don’t think I could have had the week I had if all that didn’t happen.”

Bech had six receptions for 68 yards in the game. He joins Dak Prescott, Justin Herbert and Daniel Jones as past Senior Bowl MVPs.

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OU’s Venables to call plays, adds two assistants

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OU's Venables to call plays, adds two assistants

Oklahoma head coach Brent Venables will handle defensive playcalling responsibilities for the Sooners in 2025, he announced in a statement Saturday, assuming full control of the program’s defense for the first time since took over in late 2021.

Oklahoma has spent more than a month searching for its next defensive coordinator since former playcaller Zac Alley left for the same role at West Virginia on Dec. 29 after one season with the Sooners.

Venables’ announcement came as Oklahoma introduced a pair of defensive assistants Saturday — former Arkansas State defensive coordinator Nate Dreiling and former Clemson defensive playcaller Wes Goodwin.

“I have reflected on all facets of our program over the past several weeks,” Venables, entering his fourth season at Oklahoma, said in a statement. “Since I was hired as head coach, we have carefully assembled the defensive personnel and scheme that is suited to compete at the highest level, and we’ve built a deep and talented roster ready for the moment. I have high expectations for our program and will do everything in my power to achieve our goals for our players. To that end, I will take over defensive playcalling responsibilities for the 2025 season.”

Drieling, who will coach inside linebackers, was hired at Arkansas State last month after spending one season at Utah State, where he served as defensive coordinator and interim head coach last fall, leading the Aggies to a 4-8 finish after replacing Blake Anderson. Goodwin replaced Venables as Clemson’s defensive coordinator in 2022 and spent three seasons leading the Tigers defense before his firing following the 2025 campaign.

The pair of defensive minds follow first-year offensive coordinator Ben Arbuckle as the latest additions to Venables’ staff this offseason.

“Adding Nate and Wes to our team, with their extensive and diverse experience, simply adds to my expectations and excitement for our defensive unit,” Venables said. “I’m energized by the prospect of getting back into playcalling and for the continued momentum I see us gaining with the strategic moves we’re making on both sides of the ball.”

A three-time national champion coordinator, Venables’ decision to return to playcalling marks the latest evolution in his approach since taking over the Sooners. Former Oklahoma defensive coordinator Ted Roof served as the program’s playcaller for the 2022 and 2023 seasons before Venables turned to Alley, 31, in 2024.

Oklahoma finished 19th nationally and fifth across the SEC in total defense (318.2 yards per game) this past season.

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Huskers likely to cancel spring game, says Rhule

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Huskers likely to cancel spring game, says Rhule

LINCOLN, Neb. — The Nebraska spring game, one of the best attended in college football and a major revenue producer, likely won’t be held going forward because of coach Matt Rhule’s concern about other teams poaching his players.

“The word ‘tampering’ doesn’t exist anymore,” Rhule said Saturday at his midwinter news conference. “It’s just an absolute free open common market. I don’t necessarily want to open up to the outside world and have people watch our guys and say, ‘He looks like a pretty good player. Let’s go get him.'”

The spring game has a long tradition at Nebraska. Last year, the event drew 60,452 to Memorial Stadium, fourth highest in the nation behind spring games at Ohio State, Alabama and Penn State. The Cornhuskers’ game also was televised on the Big Ten Network.

“I dealt with a lot of people offering our players a lot of opportunities after that,” Rhule said. “So you go out and bring in a bunch of new players and showcase them for all the other schools to watch? Doesn’t make a lot of sense to me.”

Six Nebraska players entered the transfer portal the week after last year’s spring game.

The spring portal period ends April 25, the day before Nebraska’s spring practice wraps up. However, players can switch schools without entering the portal, as was the case with Wisconsin safety Xavier Lucas‘ recent move to Miami.

Rhule said exposing his players to other schools is more of a concern to him than risking injuries in a spring game. Wide receiver Demitrius Bell and cornerback Blye Hill were hurt in last year’s spring game and missed the season. Rhule said live tackling will continue in scrimmages during spring practice.

“Guys are being compensated now, and you’re putting money behind some people, a whole other set of parameters,” Rhule said. “Yet, at the same time, you have to get good. Honestly, to me, it’s about protecting the roster and protecting through that portal period.”

Asked if there would be a spring game with a scrimmage format to wrap up spring practice, Rhule said, “I don’t know that yet, but I’ll be honest with you, I highly doubt it.”

He said he does want to “show off” his players to the fans in some fashion. Athletic director Troy Dannen said on his radio show last week that a to-be-determined event would be held on April 26, possibly one that involves football and other fall sports.

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