2026 DC Retirement at a Glance

1. THANKS, BOSS — Nearly half (47%) of individuals with a 401(k) or other defined contribution plan say they wouldn’t save for retirement if they didn’t have a retirement plan at work. Across the income spectrum, 58% of those with household incomes below $50K wouldn’t save for retirement without a workplace plan, compared to 39% of those with incomes greater than $150K. (Source: Investment Company Institute)

2. BREAKING THE PIGGY BANK —In 2025, a record 6% of workers with Vanguard 401(k) plans took hardship distributions. Those making less than $50K per year accounted for 40% of those withdrawals, while workers making $150K or more accounted for just 1%. Lower earners cited housing costs as their top reason for withdrawing funds, while higher earners most often cited tuition payments. (Source: Morningstar)

3. GEN X CATCHES UP — In 2025, the average 401(k) account balance increased 13% to $167,970. The total savings rate remained unchanged year over year at 14.2% (employee contribution of 9.5% plus employer contribution of 4.7%). Among Gen X workers, increased uptake of catch-up contributions pushed their average savings rate to 15.4%. (Source: Morningstar)*

4. HOW AMERICA SAVES — In 2025, 14% of 401(k) plan participants manually increased their payroll deferral percentages, while 31% did so via auto-escalation. Just 10% lowered their deferral rates, including 2% who stopped contributing entirely. Nearly 80% of all contributed dollars were invested in equities in 2025, and nearly two-thirds of all 401(k) assets were in target date funds. (Source: Vanguard)

5. BENEFITS VS BILLS — The average healthy 65-year-old couple can expect to receive lifetime Social Security benefits of $802K. That same couple faces lifetime premiums of $689K for traditional Medicare alone. When adding in deductibles, copays, and hearing, vision, and dental plans, total health care costs increase to $955K — more than their total Social Security benefits. (Source: HealthView)

6. NOT WORTH THE FREE DINNER — High maintenance costs make owning a timeshare the top financial regret among retirees. Nearly 9 out of 10 timeshare owners (87%) ultimately regret their purchases, citing reasons like annual maintenance fees that average $1,200, limited availability for preferred dates and locations, and financial obligations on their estates. (Sources: The Independent, Alpha Timeshare Consultants)

7. NO PLACE LIKE HOME — 60% of US adults who live alone said that if they were no longer able to do so, they would prefer a caregiver move into their home. 18% would choose assisted living, 11% would move in with a family member, and the rest would choose other arrangements. (Source: Pew Research)

8. ROOMMATES MATTER — A study of nursing homes found that when patients with Alzheimer’s disease and related dementias (ADRD) are placed in a room with a cognitively healthy roommate, their 90-day mortality declined by 5.1 percentage points. Non-ADRD patients showed no negative effects from being roomed with ADRD patients, though they did benefit from private room placement. (Source: NBER)

9. FEES FALL, REVENUES RISE — The asset-weighted average expense ratio for target date mutual funds (TDFs) declined to a record low of 27 basis points (bps) from 29 bps in 2024. With more than $2 trillion in total assets, the 2-bps decline totaled savings of roughly $80 million for investors, but the sector also saw $580 million of additional fee revenue in 2025. (Source: Morningstar)

QUESTION: The average American reports having had six employers over the course of their career. What percentage of Americans maintain multiple retirement accounts?