Vanguard Introduces How America Retires, Analyzing America’s Retirement Revolution

VALLEY FORGE, PA (November 12, 2025)-Vanguard introduces the inaugural How America Retires report, a companion to How America Saves, that analyzes Vanguard retirement plan data and industry trends, uncovering insights into the behaviors, decisions, and challenges faced by Americans in retirement.

As defined contribution (DC) plans continue to dominate the retirement landscape, How America Retires explores income-generation strategies in retirement and the critical role 401(k) plan design plays in shaping retiree outcomes. With more than four million Americans turning 65 this year¹ and significant progress being made in the accumulation of retirement savings over the last several years, How America Retires delivers a timely assessment and roadmap for improving retirement outcomes and financial security.

"Turning savings into income is one of the most important and complex steps in retirement planning," said Lauren Valente, Managing Director of Vanguard Workplace Solutions. "That's why we're proud to launch How America Retires and provide a roadmap for building resilient, income-generating strategies that support retirees throughout the next phase of their lives."

From Saving to Spending

With over 100 million Americans covered by defined contribution plans and $12 trillion in assets at stake², How America Retires provides a strategic framework for enhancing retirement planning and safeguarding financial well-being. Key findings from the report include:

• Plan Design Matters: Retirees in retirement plans offering flexible distribution options are 30% more likely to remain in-plan and significantly less likely to cash out their balances in the first year.

• Asset Preservation Trends: By the end of the retirement year, over half of retirees remain in their employer's plan, and 75% preserve their assets three years post-retirement.

• Balance-Driven Behavior: Retirees who cash out typically hold smaller balances (~$7,000 median), while those who roll over or stay in-plan tend to have higher balances, underscoring the need for tailored income solutions.

• Portfolio Guidance Needed: Nearly 30% of retirees maintain either aggressive or conservative equity exposure, suggesting a gap in portfolio construction support.

Commitment to Retirement Innovation

How America Retires also highlights emerging retirement income solutions, including hybrid annuity target-date funds (TDFs), installment payment options, and expanded access to financial wellness tools. These innovations aim to address longevity risk, market volatility, and the need for personalized advice.

How America Retires offers a comprehensive view of plan data and industry-specific trends to help plan sponsors, consultants, and individuals make informed decisions. The full report and industry reports can be found on Vanguard's Workplace Solutions website.

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About Vanguard
Founded in 1975, Vanguard is one of the world's leading investment management companies. The firm offers investments, advice, and retirement services to tens of millions of individual investors around the globe-directly, through workplace plans, and through financial intermediaries. Vanguard operates under a unique, investor-owned structure where Vanguard fund shareholders own the funds, which in turn own Vanguard. As such, Vanguard adheres to a simple purpose: To take a stand for all investors, to treat them fairly, and to give them the best chance for investment success. For more information, visit vanguard.com.

1 Lisa Camner McKay. Saving for Retirement in America. Federal Reserve Bank of Minneapolis, April 14, 2025. 1 L

2 U.S. Department of Labor, Private Pension Plan Bulletin Historical Tables and Graphs 1975-2022, September 2024; and Investment Company Institute, Quarterly Retirement Market Data, Fourth Quarter 2024, March 2025.

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