“Although automatic saving and investing solutions are extremely effective in helping participants prepare for retirement, it is difficult to envision an ‘automatic income solution’ that could serve a broad and diverse retiree population, given the wide variation in participants’ retirement needs.”

So says Vanguard in the introduction to its recent booklet, “How America Retires,” a supplement to Vanguard’s annual report, “How America Saves.” In June 2026, Vanguard published a booklet, “Vanguard’s Principles for Retirement Income.”

Both booklets stress the recognition of longevity risk—the risk of living longer than you have planned for and saved for—as a significant financial risk in retirement.

Vanguard’s four principles for retirement income are:

Start with purpose. Define what matters most—your goals, lifestyle, and priorities. Understand the risks you could face and build a spending plan around them.

Cover the essentials. Ensure your basic needs, such as housing, food, and health care, are supported by reliable income sources like Social Security, pensions, and annuities.

Make your wealth last. Extend the life of your portfolio by managing debt, reducing taxes, using smart withdrawal strategies, and preparing wealth transfer plans.

Simplify. Make your financial life as simple as possible so you have more time for the things that are most important to you.

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