Today’s heightened economic volatility requires American homeowners to navigate toward stable financial harbors. Unison Mortgage Corporation highlights a key insight: as traditional retirement safety nets weaken, many are turning to their homes as a source of financial security. Yet, the survey reveals a concerning trend—many homeowners are using their 401(k) savings earlier than expected, putting long-term financial stability at risk.
It's especially important to avoid withdrawing from your 401(k) when the market is down, as this can lock in losses and significantly hinder your long-term growth. In these conditions, protecting retirement accounts becomes even more critical.
A nationwide survey of more than 1,000 U.S. homeowners found that 94% view their home as their most significant financial asset, with nearly half (47%) indicating that it represents more than half of their total wealth. At the same time, many are drawing on retirement accounts well before retirement.
Eighty-five percent of respondents reported tapping into their 401(k) unexpectedly, with 65% using most or all of their savings before reaching retirement age. This can lead to long-term setbacks, including tax penalties, lost investment growth, and reduced income security later in life. The early depletion of retirement funds underscores just how fragile many Americans’ financial situations have become.
The data also shows that 92% of respondents trust their home equity more than Social Security. With concerns mounting over the long-term viability of traditional retirement programs, the family home is increasingly viewed not just as a place to live, but as a financial resource.
These findings point to a growing need for alternative strategies to fund life’s major expenses—especially those that preserve retirement savings. For many, home equity may offer a smarter solution. Rather than draw down a 401(k), homeowners can consider leveraging their home’s value through financing options designed to protect long-term stability and support financial goals.
Key Survey Findings:
Home Equity as Wealth: 47% of homeowners say their home makes up 51-75% of their total wealth; 8% say it accounts for nearly all of it.
Primary Asset: 94% of homeowners regard their home as their largest financial asset.
401(k) Depletion: 85% have tapped into their 401(k) savings unexpectedly; 65% used most or all before retirement.
Home Equity vs. Social Security: 92% of respondents trust their home equity more than Social Security.
Consequences Without Home Equity Access: 59% foresee potential homelessness, 56% may need to relocate, 29% expect to work indefinitely, and 14% lack an emergency cushion.
Instead of jeopardizing your retirement by drawing from your 401(k), consider the potential of leveraging your home equity responsibly. Home equity can provide a valuable financial resource for various needs without the penalties and long-term consequences associated with early 401(k) withdrawals. Exploring options that allow you to tap into your home's value strategically can offer a more secure path to financial well-being, both now and in retirement.
Survey Methodology and Disclaimer
Survey Methodology: The survey was conducted by Unison Mortgage Corporation in March 2025, polling 1,160 U.S. homeowners aged 18 and older. Participants were selected through an online panel. The survey asked about financial behaviors, retirement savings, and home equity perceptions. Results may not be representative of all U.S. homeowners due to sampling limitations.
Disclaimer: The information in this blog post is provided for informational purposes only and does not constitute financial, tax, or legal advice. Unison Mortgage Corporation is a provider of home equity financing solutions, and the survey was conducted to better understand homeowner financial behaviors. The findings and suggestions, including those related to 401(k) withdrawals and home equity options, may not apply to all individuals’ circumstances. Home equity products involve risks, including potential loss of your home, interest costs, and varying terms based on state regulations. Early 401(k) withdrawals may incur tax penalties and impact long-term retirement savings; consult a qualified financial advisor or tax professional before making decisions. Unison Mortgage Corporation makes no guarantees about the accuracy, completeness, or applicability of the survey results to your situation. For personalized advice, contact a licensed financial professional. To learn more about home equity solutions, visit unison.com, noting that product availability varies by state."
About the Author
Unison
We're the pioneers of equity sharing, offering innovative ways for you to gain access to the equity in your home. For more than a decade, we have helped over 12,000 homeowners to pursue their financial goals, from home renovations to debt consolidation, retirement savings, and more.
