Vanguard Study Finds Most Retirees Delay Taking Retirement Distributions

A study from Vanguard revealed that 78% of retirees holding account balances over $100,000 do not take distributions from their retirement savings between the ages of 60 and 72. Many retirees treat their accounts reactively, using them as a financial backstop for specific needs before required minimum distributions (RMDs) begin at age 73 or 75.

Retirement experts suggest that waiting too long to draw down savings could result in significant tax bills later in retirement. Smoothing out withdrawals is presented as a benefit to manage potential costs for medical expenses or long-term care.