At a glance
- About half of retirees keep the money in the plan, and 15% withdraw it all as cash, Vanguard found.
- For advisors whose growth depends on rollovers, the first due-diligence check is whether the client's 401(k) offers installment payments or partial withdrawals.
- Vanguard also found that nearly 40% of self-directed retirees hold portfolios that are either overly conservative or overly aggressive, a pattern the report attributes, perhaps, to years before target-date funds became common.
Recent retirees are 40% more likely to keep their savings in their workplace plan when it offers installment payments or partial withdrawals, according to Vanguard's 2026 How America Retires report, first reported by 401(k) Specialist.
About half of retirees keep the money in the plan, and 15% withdraw it all as cash, Vanguard found. Separate Vanguard findings on small-balance cash-outs, as Private Wealth Daily reported, examine money leaving plans at a different point.
For advisors whose growth depends on rollovers, the first due-diligence check is whether the client's 401(k) offers installment payments or partial withdrawals. If it does, the client has an in-plan income option that Vanguard says makes staying 40% more likely; if not, the rollover may be the only path to flexible retirement income.
Vanguard also found that nearly 40% of self-directed retirees hold portfolios that are either overly conservative or overly aggressive, a pattern the report attributes, perhaps, to years before target-date funds became common.
Reported by the Income & Annuities desk. Published . Corrections