The Long Run: America’s Retirement Marathon and the Road Ahead

Scott Senseney

Every spring, tens of thousands of runners line up in my hometown of Hopkinton, Massachusetts, ready to take on one of the world’s most demanding races—the Boston Marathon. Having run it myself, I’m reminded that lasting progress isn’t about how fast you start—it’s about preparation, endurance and the systems you rely on when the miles get hard.

The same principles apply to Americans’ journey toward retirement security. Over the past several decades, the shift toward defined contribution plans has unfolded step by step, shaped by intentional plan design choices, rather than quick wins. That evolution is captured in Vanguard’s “How America Saves,” now marking its 25th edition. Participation has expanded, investment behavior has improved, and plans are more effective at helping millions of workers save for the future.

But as any long-distance runner knows, you can’t judge success by the first few miles. It also can’t be measured by a metric like average account balances. Markets fluctuate. Careers are uneven. Life throws hills at you that you didn’t train for. The real test of the system is whether it helps people stay on course across income levels and through every stage of their financial lives.

Thoughtful Plan Design

One of the most persistent challenges of the system is making it work to support lower‑paid workers. Employers consistently share how much they care about the financial well-being of employees who face the toughest trade-offs between saving for the future and meeting today’s needs as everyday costs continue to rise.

“How America Saves” shows real progress, with record high retirement plan participation and broader access, while also highlighting a reality plan sponsors continue to face: Lower-income participants are 3.5 times more likely to take hardship withdrawals when financial shocks occur, underscoring the ongoing tension between long-term retirement savings and short-term financial needs. Many Americans also lack sufficient emergency savings, leaving retirement accounts as a fallback in moments of stress.

Improving outcomes for these employees requires more than encouraging higher contribution rates. It calls for thoughtful plan design with automatic features, appropriate defaults and tools that accommodate employees’ current circumstances and help make saving easier and more sustainable over time. When plans are built this way, they can better support the workers who need them the most.

In-Plan Support for Retirees

A second long-term challenge emerges at the other end of the journey: What happens when participants stop working?

Today, nearly 60% of retirees in Vanguard-administered plans are choosing to stay in their plan, up from 32% in the early 2000s. This shift highlights how participants are benefiting from institutional pricing, diversified investment options and the expanding suite of products designed to support income in retirement. Just as importantly, it signals a fundamental change in how the system is evolving. Defined contribution plans are no longer just vehicles for saving—they are increasingly critical to helping participants generate and manage retirement income over time. As more Americans enter retirement, the ability to turn savings into sustainable income will help define success, with plans playing a more important role than ever in that transition.

Together, these two realities point to the same conclusion: Durable retirement outcomes depend on plans that support workers from their first paycheck through retirement, no matter their income level. Better plan design, broader access and continued focus on participant experience are not short-term fixes; they are long-term solutions that strengthen the system over time.

While you can’t see the marathon’s finish line from Hopkinton, experienced runners know that with the right preparation and steady commitment, progress adds up mile by mile. Over 25 years, defined contribution plans have covered meaningful ground. “How America Saves” shows how far we’ve come and reminds us that finishing strong means continuing to invest in designs and solutions that help more Americans get in, stay in and finish the race as strong as possible.

Scott Senseney is the head of client relationship management and sales at Vanguard.

This feature is to provide general information only, does not constitute legal or tax advice, and cannot be used or substituted for legal or tax advice. Any opinions of the author do not necessarily reflect the stance of ISS STOXX or its affiliates.