Retirees face surprising problem with 401(k)s
American workers have successfully accumulated trillions in 401(k) assets but lack a plan for withdrawals. New research indicates a gap in knowledge regarding how to safely spend these savings after paychecks stop. Many retirees are now facing the challenge of turning their balances into sustainable income.
What changed
Recent studies from June 2026 highlight a systemic failure in retirement spending preparation despite successful asset accumulation.
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Retirees Struggle to Convert 401(k) Savings Into Income
confidence 90%American workers have successfully accumulated trillions in 401(k) assets but lack a plan for withdrawals. New research indicates a gap in knowledge regarding how to safely spend these savings after paychecks stop. Many retirees are now facing the challenge of turning their balances into sustainable income.
What's confirmed:
- Nuveen reports 80 million workers use 725,000 plans containing $8 trillion in assets.
- Three studies published in June 2026 by Vanguard, Corebridge Financial, and the TIAA Institute/Nuveen show workers are poorly prepared to spend down 401(k) savings.
- Retirees are struggling to determine how to safely spend their 401(k) savings.
Still unconfirmed:
- Higher yields are driving a surge in demand for in-plan annuities in 2026.