The Vanguard Retirement Outlook: A national perspective on retirement readiness
By Fu Tan, Fiona Greig, Andrew S. Clarke, Kevin Khang, Kate McKinnon & Victoria Zhang
The global retirement landscape is changing. As populations age,
government retirement benefits are under pressure. At the same time, the shift from defined benefit to defined contribution workplace retirement plans means that workers bear more responsibility for managing capital markets risk and turning accumulated savings into retirement income. And many workers have no access to a workplace plan. In the United States, the figure is about 50%.
The Vanguard Retirement Outlook surveys this changing landscape
and assesses its implications for workers. We ground our analysis in
the Vanguard Retirement Readiness Model, which uses Vanguard’s
capital markets forecasts and empirical data on household balance
sheets, savings rates, and spending patterns to estimate retirement
readiness for different demographic groups. This lens on the systemic
and individual drivers of retirement readiness raises critical questions and yields actionable insights for policymakers, employers, and
individuals. Our goal is simple: to give all workers the best chance for a secure retirement.
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