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Retirement trends plan sponsors can't ignore

Workplace savers are feeling more confident about retirement—but plan sponsors aren’t on the same page. As the gap in outlook widens, plan sponsors have a critical role to play. Uncover the insights shaping this divide.
Unlock a decade of retirement research
2025 Read on Retirement study

Key findings

01.

Navigating uncertainty and a growing divide

Saver confidence is up but fragile. This year’s dip underscores how closely confidence tracks with market volatility. And while savers feel increasingly sure, only 38% of employers believe the majority of their employees are truly on track—a record low. The divide is real and growing.

02.

Savers want security – and employers are listening

Nearly two-thirds of savers worry they’ll run out of money in retirement, so it's no surprise 86% say they want guaranteed income. The demand—and the urgency—has never been greater and for the first time, 100% of employers feel responsible for helping.

03.

The pressure is on to make every dollar work harder

Median savings rates fell from 12% in 2022 to 10% this year, even as the cost of retirement rises. To close the gap, savers are increasingly looking at active management and alternative assets to boost returns. The pressure is on to make every dollar work harder.

Retirement confidence is fragile & divided

Savers feel optimistic
Confidence is climbing - up 23% over the last decade - as savers grow surer of their retirement readiness.

But confidence is fragile
Retirement confidence closely mirrors market volatility - this year's drop from 68% to 64% highlights the direct correlation.

Retirement readiness is divided
Over the past five years, plan sponsor confidence split from workplace saver outlooks and the gap only continues to widen.

Guaranteed income is in demand

With pensions fading, the SECURE Act in 2019 opened the door to guaranteed income—meeting growing demand for retirement security and reliability.

93% of savers are interested in retirement income products

Too afraid to spend

Nearly two-thirds of savers worry they'll run out of money in retirement - a 10% increase from last year.

Retirees want more reliability

28% of retirees are worried about their ability to maintain a steady monthly income - up from 16% in 2020.

Guaranteed income is gaining traction

74% of savers would save more if their plan had an option for guaranteed income (up from 65% in 2019).

Savings are down, concerns are up

Today's savers face a tough road: economic uncertainty, rising longevity and portfolios that aren't keeping pace. They are saving less, while the cost of retirement keeps climbing. They tell us they're worried about their future well-being, and retirees would tell them they should be.

We have work to do.

10%

the median savings rate reported this year, down from 12% in 2022

54%

of Gen X savers say they are on track, the least of any generation

57%

of savers are now willing to take money from their plan in an emergency - up from 33% in 2020

Retirement confidence in focus: Navigating volatility and change

Retirement confidence is slipping. Only 27% of retirees feel prepared, while plan sponsors see a widening gap. BlackRock’s Jaime Magyera joins The Bid to unpack the latest Read on Retirement report, the role of income solutions, target date funds, and private markets in securing better outcomes.

Closing the savings gap

Savers need their money to work harder—and plan sponsors are feeling the pressure to deliver. The good news? The tools are already here. Now it’s time to use them.

Active approaches can help uncover value, manage risk and adapt to changing conditions. Integrating private market assets into 401(k)s is another way to help move the nest egg needle. 

A pink piggy bank with a man inside, illustrating the importance of saving for retirement.

Savers are serious about growth

80% of savers would be interested in using an actively managed fund, but only 15% are extremely familiar with active investing strategies, indicating they need more education.
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Lean into active management

86% of plan sponsors agree that actively managed target date funds (TDFs) can generate incremental returns and 83% believe they help reduce volatility for participants.
A red key symbolizing the opportunity to unlock and reshape retirement outcomes through capital markets.

Unlock the full power of capital markets

24% of plan sponsors are considering adding alternatives to their plans—and TDFs are their top choice for integration. The opportunity to reshape retirement is growing.

10 trends shaping your workforce

A decade ago, we set out to understand how American workers feel about retirement. Today, our Read on Retirement® report reveals not just how savers think about their future, but also how employers can better support them.

Read the 10 insights every employer should know
Am I on track for retirement?

Financial tools and education can help savers know if they’re on track to retire on their own terms. Overall, our retirement research found that roughly 6-in-10 participants say they are on track with their retirement savings, but that’s notably lower than in 2024. Gen Z savers are more likely to say that they are on track than older generations - 76% versus 54% of Gen X and 63% of Boomers. 

The top reasons participants gave for not feeling on track were: I should be saving more money; I’m not sure how much retirement income will need; and the negative impact of inflation on ability to save for retirement. 

Finally, roughly three quarters of participants say that they would save more for retirement if their plan provided them with digital tools to tell if they are on track. 

Am I saving enough for retirement?

Retirement savings rates depend on a participant’s unique circumstances and goals. Our retirement research found that just over 6-in-10 participants contribute 10% or more of their salary to their retirement plan – that’s down from 12% in 2022. However, participants think they need to contribute 15% to live the lifestyle they want in retirement.

How do I know I am saving enough for retirement?

Tools and financial education could help savers know if they’re saving enough for retirement. Our retirement research found that when it comes to how employers can help participants with retirement planning, the top three ways were: 

- Automatically calculates how much income they’ll have in retirement 
- Provides them with secure income generating options in their workplace retirement savings plan 
- Advises them on the ideal amount of savings for someone their age 

Similarly, the most important components of a financial wellness program for participants include: retirement income planning/strategies; employer match; and personalized investment advice.

How can I make my retirement savings last?

A guaranteed income solution could provide more spending security in retirement. Our retirement research found that roughly two thirds of participants note say it’s difficult to know how their retirement savings will translate into monthly retirement income and, not surprisingly, the same number worry about outliving their retirement savings- significantly more than in 2024. 

9-in-10 participants would find it helpful to receive guaranteed income in retirement, and the same number mention it would be helpful if their employer provided secure income generating options. 

Retirees agree: Roughly 9-in-10 say an employer should provide their employees with secure income generating options through their workplace retirement savings plan and help employees secure a guaranteed income stream through retirement. 

How much money do I need to retire?

Understanding investment options could help savers know how much money they might need to retire. Our retirement research found that while workplace savers anchor on growth as an investment objective, they may not be aware of the strategies available to help meet their savings goals. 81% say it would be helpful to receive specific education around the investment options available to them.

Similarly, two thirds of participants say that they would save more for retirement if their plan provided education on how to navigate inflation and/or market volatility. They also say more information on the amount of money they can spend each year in retirement as well as the total amount of money they will have at retirement would be most helpful for planning retirement. 

Retirement income

LifePath Paycheck®, our retirement income solution, combines the simplicity of a target date strategy with the increased certainty of an annuity from insurers selected by BlackRock to offer participants a paycheck for life.
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LifePath Dynamic

LifePath Dynamic Funds are aimed to generate consistent excess returns by combining lifecycle expertise with a differentiated active management approach.
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Private markets in defined contribution plans

Learn more about how BlackRock is using private market assets to innovate and seek new possibilities for your portfolio.
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