2026 DC Retirement at a Glance

1. EXPECT THE UNEXPECTED — 83% of households with at least one retiree will face an unexpected expense in a typical year. Average unexpected expenses total $6,000/yr (10% of annual income), 40% ($2,400) of which is usually health care costs. Only 58% of older households have enough cash on hand to cover a single year of unexpected expenses. (Source: Center for Retirement Research)

2. RETIREMENT SAVING ON HOLD — A survey of college graduates found that student loan debt took an average of 10 to 12 years to pay off, and one in three said that going to college didn’t make them financially better off. When it comes to life goals put off due to student loan debt, 31% of respondents cited saving for retirement, followed by 27% who have put off buying a home. (Source: Oxford University)

3. LISTEN TO YOUR ELDERS — A survey of retired Americans said that 92% of people underestimate the savings needed to retire comfortably and advised that new retirees should have at least $823,800 in savings and investments. The typical retiree, however, has an average of just $288,700 — and only 23% had more than half a million dollars. (Source: Clever Real Estate)

4. $48 TRILLION IN RETIREMENT — Total assets in US retirement accounts and plans reached a record $48.1 trillion in 2025 — doubling over the last 10 years. The largest growth in assets has come from IRAs, which increased 152% from $7.5 trillion to $18.9 trillion and now account for 39.4% of total retirement assets. (Source: Investment Company Institute)

5. ME TIME — Over 85% of retirees report being happy, having close relationships with family and friends, and enjoying life. The top two priorities of retirees are enjoying life (70%) and being healthy (67%). Only 1% of retirees cite career as one of their top priorities. Just under twothirds of retirees say their standard of living has stayed the same in retirement. (Source: Transamerica)

6. GET ANNUITY IN EARLY — The bipartisan Retirement Simplification and Clarity Act would allow workers over 50 to roll over all or part of their 401(k) assets into qualified annuities not already offered in their current plans. While some 401(k) plans allow workers to make these moves when they reach the age of 59.5, in most plans the option is currently unavailable to younger employees. (Source: CNBC)

7. DON’T FORGET THE RMD — 6.7% of individual retirement account holders who have reached the required minimum distribution (RMD) age made no withdrawals in 2024. The percentage of account holders who made no RMD varied widely by account size, ranging from 56.8% for those with balances of less than $5K to just 2.5% for those with balances above $1 million. (Source: Vanguard)

8. SHORTER HOLD TIMES — In fiscal year 2025, the average time that callers to the Social Security Administration (SSA) waited on hold before speaking with an actual SSA employee declined in every month relative to 2024. Callers waited on hold the longest in January (29.7 minutes), while the shortest hold times were in September at an average of just 7.0 minutes. (Source: US Inspector General)

9. GO (MID) WEST, OLD MAN — Based on levels of housing affordability and retirement income, 15 of the 20 best housing markets for retirees in 2026 are in the Midwest, with Ohio accounting for five of the top 20. The worst housing markets for retirees are mostly in California, accounting for 11 of the 20 worst cities, including the top five worst. (Source: GO Banking Rates)

QUESTION: If the average partially or fully retired household spends $75,630 per year at the age of 60, how do their spending habits change by the time they reach 70 and 80?