Perspectives : Participant experience | August 10, 2026

Retirement income best practices: Key themes from our webinar

Defined contribution (DC) plans have largely solved the challenge of helping participants save for retirement. The next challenge is helping them turn their savings into reliable income. In a recent webinar, Vanguard experts outlined why retirement income requires an integrated, system-level approach—not a product decision in isolation. The result is a practical framework sponsors can use to assess their plan's retirement income strategy and identify next steps.

Watch the webinar replay

The shift from accumulation to decumulation

DC plans have become highly effective at helping participants save, with automatic plan design features and qualified default investment alternatives (QDIAs) creating a more guided accumulation experience. Retirement introduces a different reality. Participants must shift from saving to spending—making ongoing decisions about withdrawals, risk, and income sustainability. What was once largely automated becomes more complex and uncertain.

For plan sponsors, this marks a transition from helping participants build wealth to helping them use it with confidence over time.

What participant behavior is signaling

Participant behavior in retirement often reflects this shift. Withdrawal patterns can vary widely. Some participants withdraw too quickly, others hesitate to access their savings, and many take inconsistent distributions (see figure below from Vanguard’s How America Retires 2025 report).

Notably, among those who took withdrawals within five years of retirement, only a very small percentage withdrew a consistent, sustainable amount each year. This variability suggests that many participants may not be operating from a clear income strategy. Decisions may be reactive, influenced by short-term needs or concerns rather than a structured plan.

Emotional factors also play a role. Anxiety about running out of money and uncertainty around health care costs can all shape how participants approach retirement income.

For plan sponsors, this reinforces the need to think more broadly than just offering participants products. Participants need education, guidance, and an integrated experience to support better decision-making.

A comprehensive approach to retirement income

Vanguard promotes a comprehensive retirement income approach that integrates investment strategies, guaranteed income, financial wellness and guidance, and advice.

This approach reflects the idea that retirement is not a single moment, but a series of ongoing decisions—shaped not only by the products and services available, but by how participants engage with them. By leveraging our data-driven research and expertise, we build better participant experiences, help sponsors evaluate plan design, and develop new product solutions for a more integrated strategy. The result is helping participants feel more confident, make more informed decisions, and stay on track for a more secure retirement.

Explore our approach to retirement income.

The role of ease, effectiveness, and emotion

The participant experience plays a central role in retirement outcomes. Tools, communications, and digital experiences can all influence whether participants engage, follow through, and make decisions aligned with their long-term goals. A useful lens for evaluating that experience includes three dimensions:

Ease: Is the experience simple and frictionless?

Effectiveness: Does the experience actually drive behavior?

Emotion: How does the experience feel to participants?

When these elements work together, the participant experience becomes a meaningful part of how strategy translates into action—highlighting how the right recordkeeper can help drive better engagement and stronger outcomes.

Unlocking what plans already offer

Many plans already include features that can support retirement income, such as withdrawal modeling tools, installment payments, and financial wellness resources.

However, in some cases, they may not be activated. In others, participants may simply be unaware they exist.

Conducting a thoughtful inventory of current plan features can help identify opportunities to improve outcomes. Often, the opportunity lies in better integration, communication, and accessibility.

Read our Retirement Income Strategies: Best Practices for Plan Sponsors research, where we detail specific opportunities to make a plan more retiree-friendly.

Innovation and what’s evolving

Retirement income solutions are evolving at the intersection of product design and participant experience—expanding both how income is delivered and how participants engage with their choices.

Vanguard recently introduced the Target Retirement Lifetime Income Trusts—an expansion of our Target Retirement series designed to help meet the increasing demand for a QDIA that provides a built-in path to optional guaranteed income.

We’ve also created Vanguard AI Assistant, an enhancement to the Retirement Withdrawal Coach, which allows participants to model different retirement scenarios, estimate monthly income, and understand different potential outcomes. The conversational interface enables participants to ask questions on their own terms, helping make a complex topic simpler and more intuitive.

A practical path forward for plan sponsors

For plan sponsors looking to strengthen their retirement income strategy, the following framework offers a practical starting point.

Define desired outcomes for participants.

Assess current plan capabilities.

Prioritize high-impact gaps.

Strengthen participant engagement.

Progress does not require a complete redesign. Incremental improvements—particularly those that make decisions easier and more understandable for participants—can have a meaningful impact over time.

Watch the full webinar replay for a deeper dive into the best practices covered in this article.

Connect with your Vanguard client team to discuss how you can apply these retirement income strategies to your plan.