When workers retire, a key decision they may face concerns their 401(k) savings — do they leave the money in their employer plan, or roll it over to an individual retirement account?
Companies are increasingly adding features to their 401(k) plans that may entice retirees to leave their money there, including more flexibility for retiree withdrawals and annuity options in their lineups. These changes are intended to accommodate better the needs of retired workers, who shift from accumulating assets as an employee to spending them as a retiree.
It’s also generally in the company’s interest to keep retirees with large balances in its 401(k) plan, said Craig Copeland, director of wealth benefits research for the Employee Benefit Research Institute. The more assets in the plan, the lower the cost for both the plan’s administrator and participants.
“Keeping high-balance accounts in their plan [means] they can spread the costs among more assets,” Copeland said.
66% of savers worry they’ll run out of money
The slow but steady changes are coming as roughly 11,000 people turn age 65 every day, in what’s called “peak 65” — the biggest number of Americans hitting that age in history, according to the Alliance for Lifetime Income. An estimated 4.1 million are expected to reach that age from 2024 through 2027.
Additionally, more workers are reaching retirement with a 401(k) and need to figure out how to stretch it across their lifetime. That’s in contrast to decades ago, when it was more common to retire with a company-sponsored pension that delivered steady income throughout retirement.
Older workers — those at least age 55 — are more likely than younger workers to self-direct their retirement investments versus use professional guidance, according to Vanguard’s 2025 How America Retires study. One-half of them are do-it-yourself investors, and they tend to have higher balances, averaging $420,000. This means they may be making decisions about their 401(k) on their own.
The fear of not having enough income is prevalent among savers: 66% worry they’ll run out of money in retirement, according to Blackrock’s 2025 Read on Retirement survey. The majority — 93% — want guaranteed income in their golden years.
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While ex-workers can roll over their 401(k) money to an IRA, it also means managing their own assets or paying a professional to do it. There also are a host of factors that should be considered before moving the money, including available investment options and fees, experts say.
Of course, it may not occur to retirees that they can leave their assets in their 401(k): More than half — 53% — of 401(k) participants are unaware that they don’t have to move their money, according to a 2024 report from the Government Accountability Office.
Small accounts may get the boot
Most plans let you leave your assets there, including when you retire — though 2% of plans require you to move your money by age 65 or age 70, according to Vanguard. It’s a share that has remained very low over the years: In 2014, it was 4%.
The other exception: Small accounts, which are often kicked out of the 401(k) plan when an employee retires or otherwise leaves.
Many plans will close accounts with a balance under $1,000 and send a check to the ex-worker. If the money is not put into another qualified retirement account (i.e., an IRA), it is considered a distribution that may be subject to income taxes and, potentially, a 10% early withdrawal penalty.
The general rule with retirement accounts is that the penalty applies if you are under age 59½. But for 401(k)s, you can take withdrawals if you are age 55 or older in the year you leave your company.
Employers also may roll over balances of under $7,000 to an IRA.
Most 401(k) plans let retirees set up regular payments
Last year, 68% of plans let retirees establish installment payments from their accounts, and 43% of plans allowed them to take partial ad hoc cash distributions — up from 59% and 16%, respectively, in 2015, Vanguard’s research shows. If a plan doesn’t have those options, any retiree seeking to use part of their retirement savings has to withdraw the entire balance or roll it over.
However, be aware that even with installment payments or occasional withdrawals, you may face some limitations.
“Many plans are rigid when it comes to withdrawals, not only in the frequency that is allowed but in selecting what to sell to fund a withdrawal,” said certified financial planner Daniel Galli, principal with Daniel J. Galli & Associates in Norwell, Massachusetts.
For example, he said, if you’re invested in multiple funds in your 401(k) but you only want to withdraw from a particular one, you may not be able to do that.
“Many plans require withdrawals to be pro-rata from all holdings,” Galli said.
In contrast, in an IRA, “you can select which funds to sell, and this can allow you to sell investments that are doing well or better than others, potentially prolonging your portfolio,” said CFP Rose Price, a financial advisor and partner with VLP Financial Advisors in Vienna, Virginia.
Annuity options are starting to appear in plans
Meanwhile, some 401(k) plans have started incorporating annuities in their lineup in various forms to help workers have guaranteed income in retirement. Although an annuity might include an investment component, it’s a contract: You hand over your money and the provider (typically an insurance company) promises to issue regular payments to you across many years. Sometimes, that can be decades.
The Secure Act of 2019, which made a variety of changes to the U.S. retirement system, included a provision intended to eliminate companies’ fear of legal liability if their chosen annuity provider fails or otherwise doesn’t deliver on its promises.
Today, the number of 401(k) plans that allow some sort of annuity remains low, Copeland said.
“Some plans have started to offer these different types of income options, but we still don’t know what the real take-up of it is,” Copeland said.
Some may provide a standalone annuity option, while others offer annuity-enhanced target-date funds. Blackrock is the largest provider of the latter, and Vanguard unveiled its own version this month.
In simple terms, these are target-date funds that allocate some of your money toward a future annuity purchase. Target-date funds overall start out invested aggressively when you’re far from retirement and gradually shift to less risky investments as you get closer to retirement.
“There are certain plans that have adopted those [annuity-enhanced TDFs], but it hasn’t been at huge scale,” Copeland said.
Roughly $29 billion is invested in these funds, which is a tiny fraction of the more than $4 trillion invested in target-date strategies, according to Morningstar.
And, Copeland said, “it’s still a savings vehicle. You have to choose to take the income part of it, and we don’t know yet what people will do.”
In other words, annuitization won’t be automatic — the person will have to actively choose to use the money for an annuity.
“We won’t know the overall benefits of these until we see how they are used,” Copeland said.
The 2026 residential real estate market presents a nuanced landscape for homebuyers, current homeowners, and property investors. With benchmark mortgage rates adjusting alongside Treasury yield movements, real estate strategies require careful evaluation of borrowing costs, local market supply dynamics, and long-term home equity management.
Adapting Homebuying Strategies to Mortgage Dynamics
Prospective homebuyers are adapting to fixed 30-year mortgage rates hovering between 6.0% and 6.8%. While borrowing costs are elevated compared to historical lows seen in prior decades, moderating home price growth across several regional markets is creating selective opportunities for buyers with strong credit profiles.
Homebuyers are increasingly utilizing strategic mortgage options:
– Builder Rate Buydowns: Purchasing new construction homes where developers offer temporary or permanent interest rate buydowns to lower initial monthly payments.
– Adjustable-Rate Mortgages (ARMs): Selecting 5/1 or 7/1 hybrid ARMs with strict rate caps for short-to-medium-term housing plans.
– Points and Financing Structure: Evaluating upfront discount point purchases to secure lower fixed interest rates over the loan term.
Home Equity Utilization and Renovation Financing
For existing homeowners holding low-rate legacy mortgages, moving to a new property often entails relinquishing favorable debt terms. Consequently, many homeowners are choosing to renovate and expand existing properties rather than sell.
Home Equity Lines of Credit (HELOCs) and home equity loans allow homeowners to access accumulated property equity for capital improvements without disturbing their primary mortgage rate. Utilizing home equity for value-adding property renovations can enhance living space while increasing long-term property values.
Strategic Real Estate Investment Guidelines
For residential property investors, achieving positive cash flow requires strict underwriting standards:
– Stress-Test Operating Expenses: Factor in rising property insurance premiums, local property taxes, and ongoing maintenance reserves.
– Focus on High-Growth Rental Markets: Target regions experiencing steady job growth and sustained tenant demand.
– Maintain Cash Buffers: Ensure property portfolios maintain dedicated emergency reserves to navigate unexpected vacancy periods or major repairs.
Actionable Homeownership Steps
1. Evaluate Complete Monthly Housing Costs: Assess property taxes, homeowners insurance, and HOA fees alongside principal and interest.
2. Leverage Renovation Equity Carefully: Utilize equity loans strategically for renovations that generate long-term property value.
3. Prioritize Credit Score Optimization: Secure top-tier credit scores prior to mortgage pre-approval to qualify for competitive lender pricing tiers.
The United States Department of State has officially implemented a revised visa policy introducing a mandatory posting requirement for caution payments of up to $20,000 on select foreign travel applications. Under the updated regulatory framework, consular officials are authorized to require temporary nonimmigrant visa applicants from targeted foreign countries to post a refundable financial bond of $20,000 as a condition for visa issuance. The policy mechanism is designed to address diplomatic concerns regarding high overstay rates among temporary visitor, business, and educational visa categories.
The caution bond pilot program applies selectively to foreign nationals from designated countries whose diplomatic entities record historical visa overstay rates exceeding established federal thresholds. Under administrative guidelines published by the State Department, the full financial deposit is posted directly to a dedicated federal escrow account prior to final visa issuance. The entire caution payment is automatically refunded to the applicant upon verified proof of timely departure from the United States in strict compliance with the authorized duration of stay. Conversely, failure to depart within the legal timeframe results in full forfeiture of the posted financial bond to the United States government.
Diplomatic representatives and travel policy experts have expressed varying perspectives regarding the operational implementation of the caution bond system. Administration officials emphasize that the measure serves as an effective, market-based incentive to enforce international travel compliance and preserve domestic immigration security standards. However, international trade organizations and foreign diplomatic missions have raised concerns regarding the financial burden imposed on legitimate business travelers, foreign students, and commercial partners from developing nations.
The United States finalized the rule to make the temporary visa bond program permanent, taking effect on August 3, 2026. The updated permanent regulation replaces the prior 12-month pilot, eliminates the lowest $5,000 tier, and raises the maximum required bond amount to $20,000 for specific B-1/B-2 business and tourist visa applicants.
Here is the list of the 50 countries on the list as o August 3, 2026
Retirement planning strategies are evolving in 2026 to address increased life expectancies, shifting dynamic market conditions, and the transition away from traditional defined-benefit pensions. Individual investors and financial advisors are abandoning rigid retirement models in favor of flexible, multi-asset strategies designed to mitigate longevity risk and preserve purchasing power over multi-decade retirement horizons.
Mitigating Longevity Risk with Dynamic Asset Allocation
As average life expectancies extend past eighty-five years, one of the primary financial risks facing retirees is outliving their accumulated wealth. Traditional fixed income allocations—such as the standard 60/40 equity-to-bond portfolio—are being reevaluated to ensure portfolios generate sufficient capital growth alongside reliable income.
Financial planners recommend maintaining a meaningful equity allocation throughout retirement to offset long-term inflation erosion. High-dividend equity funds, global real estate investment trusts (REITs), and inflation-indexed Treasuries are combined to create diversified portfolios that deliver both growth and income stability.
The Transition to Dynamic Withdrawal Strategies
The classic “4% safe withdrawal rule” is increasingly replaced by dynamic withdrawal strategies that adapt annually based on market performance. Under a dynamic withdrawal framework, retirees adjust their annual distribution rates within pre-set caps and floors:
– Market Upside: During strong market returns, retirees can increase discretionary spending or fund family legacy gifts.
– Market Downturns: During market pullbacks, spending distributions are temporarily reduced to prevent sequence-of-returns risk and preserve core investment principal.
Guaranteed Lifetime Income Options and Deferred Annuities
To establish a guaranteed baseline for essential living expenses, individuals are incorporating modern fixed-indexed and deferred longevity annuities into their broader retirement architectures. Modern annuity structures offer competitive return caps, transparent fee schedules, and inflation-adjustment options.
By funding essential expenses—such as housing, healthcare, and insurance—with guaranteed income streams from Social Security, pensions, and annuities, retirees can manage discretionary investment portfolios with greater flexibility and lower emotional stress during market volatility.
Actionable Steps for Future Retirees
1. Calculate Baseline Retirement Expenses: Determine fixed living costs and map guaranteed income sources to cover essential expenditures.
2. Adopt Flexible Withdrawal Rules: Implement dynamic spending rules to protect investment principal against market downturns.
3. Incorporate Inflation-Protected Assets: Maintain exposure to dividend-growing equities and inflation-indexed bonds to safeguard long-term purchasing power.
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