Average 401(k) Withdrawal Rate for Retirees in 2026 Revealed—What Does It Mean for You?

Core Insights - Morningstar has increased its recommended safe withdrawal rate for retirees to 3.9% in December 2025, up from 3.7% the previous year, although actual retiree behavior suggests a different trend [1][2] Withdrawal Behavior - A study by David Blanchett and Michael Finke indicates that married retirees aged 65 with at least $100,000 in assets withdraw only 2.1% annually, while single retirees withdraw about 1.9% [3][7] - Vanguard's analysis of 70,000 retirees shows that only one-third withdrew money during the years reviewed, with just 20% of that group maintaining a steady withdrawal rate between 3% and 10% annually [5] Financial Context - The median 401(k) balance for retirees in Vanguard's sample is $133,000, which equates to approximately 2.2 years' worth of income, leading to cautious spending habits among those with lower balances [6][8] - Retirees typically spend about 80% of their guaranteed income, such as Social Security, but only utilize about half of their retirement savings [3][4]