Vanguard Research Finds the Next Retirement Challenge Begins When Saving Ends

VALLEY FORGE, PA (October 29, 2026)— As more Americans move from saving for retirement to spending in retirement, Vanguard’s 2026 How America Retires report reveals how retirees are investing, managing, and withdrawing their savings through one of the most important financial transitions of their lives. Improved savings habits and retirement plan features designed to encourage long-term investing have helped Americans better save for retirement. However, the report finds that employers, advisors, and the retirement industry have an opportunity to better support retirees as they turn those savings into sustainable retirement income.

“Defined contribution plans have helped millions of Americans make meaningful progress in building the savings they need for retirement. But the move from decades of accumulation before retirement to decades of decumulation during retirement is one of the most personal, significant financial shifts people navigate,” said Lauren Valente, Managing Director of Vanguard Workplace Solutions. “Education, advice, and thoughtful retirement plan design can help retirees understand their options and spend with confidence.”

How are retirees managing their savings in retirement?

How America Saves 2026, Vanguard’s annual report released earlier this year exploring how nearly five million American workers are saving for retirement, revealed that retirement savers are in a stronger position than ever. While workplace retirement plans have made saving easier, provided more default options, and created frameworks for saving, retirees’ approach to determining how to spend those savings is vastly more personalized.

How America Retires reveals retirees are navigating important financial decisions in a variety of ways, with many not touching their savings at all. About half of retirees initially remain in their workplace plan after retiring, but many eventually rollover their savings to other accounts like an IRA. Recent retirees are more than 40% more likely to remain in their retirement plans when flexible withdrawal options like partial withdrawals and installment payments are offered. In addition, only 15% of retirees withdrew all the cash in their workplace retirement accounts the year they retired.

The report’s findings suggest there is no single path retirees follow once they stop working, reinforcing the need for more personalized support as they navigate the shift from accumulating savings to generating retirement income.

How can employers help employees manage savings before and after retirement?

As employers support employees transitioning from saving in their careers to spending in retirement, flexible plan features as well as thoughtful guidance and education are key:

• Professionally managed investment options can help simplify portfolio decisions, especially for early-career employees. About 40% of today’s self-directed retirees have retirement portfolios that skew very aggressive or very conservative, which may reflect decisions made before investment options like target-date funds became widely available.

• Personalized advice can make a critical difference through employees’ working years and in retirement. By offering low-cost, high-quality financial guidance, employers can help their employees address their unique needs, pursue their specific goals, and gain peace of mind.

• As employees retire, offering installment payments can provide them with steady income. Retirees who withdrew from their savings via regular installments generally took out smaller portions of their accounts than those taking occasional withdrawals.

How America Retires analyzes Vanguard retirement plan data and industry trends to understand how Americans invest, preserve, and withdraw savings after retiring. To read the full report, visit Vanguard's Workplace Solutions website.

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