Published:
Dec 06, 2025
Author:
Sarah Parsons Wolter
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Vanguard, guardian of roughly 40% of the $4.5t target-date fund market, is joining a quiet revolution in retirement planning. Beginning in 2026, its new series will gradually shift up to about 25% of a worker’s balance into TIAA’s Secure Income Account by age 65, paying a guaranteed 4.05% interest and offering the option to convert into a fixed lifetime annuity. A 65-year-old with $1m who annuitizes a quarter of that today could lock in roughly $1,670 a month for life. BlackRock, State Street, and J.P. Morgan already offer similar products, though only 4% of 401(k) plans have adopted them. After decades of preaching accumulation, the industry is finally formalizing decumulation.
Meanwhile, Washington is trying to shape the other end of Americans’ financial lives. “Trump Accounts” will seed $1,000 investment accounts for children across the country, costing $15b through 2034, with Michael and Susan Dell pledging $6.25b to expand the program’s reach. JPMorgan, Schwab, Robinhood, and BlackRock are already jockeying for position, as Treasury explores low-fee or zero-fee index options and commissions Airbnb co-founder Joe Gebbia to design the app experience. Starting in mid-2026, parents and guardians will be able to enroll their children via a federal portal – creating millions of accounts at birth or early childhood that could compound for decades.
Both moves signal a deeper structural shift, as policymakers and asset managers try to re-engineer the starting line and the finish line of American savings. The industry is installing income guardrails as workers approach retirement; Washington is building an on-ramp at year zero. By funding the cradle and insuring the grave, the U.S. is attempting to close the loop on how Americans build and spend a lifetime of savings.
Portfolio News
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Engineering the Endpoints
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Industry News
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Select Financings
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