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BlackRock Read on Retirement®

2026 Read on Retirement®: A new era of retirement

Participants and plan sponsors are optimistic about retirement, yet BlackRock's Read on Retirement® reveals a gap between retirement expectations and projected outcomes. The report explores the new capabilities participants and sponsors are embracing to help close that gap, from active management and private markets to guaranteed income.
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Key takeaways

  • 01

    Confidence is rising, preparedness is still catching up

    68% of savers feel on track, yet projected balances cover only 50–60% of the retirement income they expect. The challenge is capacity: savers recognize the gap, but competing financial priorities make it harder to close.

  • 02

    New capabilities to turn optimism into reality

    Participants are increasingly embracing capabilities designed to improve retirement outcomes beyond traditional savings strategies, including active management, private markets, and guaranteed income.

  • 03

    Technology and AI are accelerating engagement

    81% of savers want tailored guidance and emerging technologies are creating an opportunity to make targeted education more accessible for sponsors, with 1 in 4 are already using AI-generated guidance.

Retirement confidence

Confidence and preparedness are not always the same thing

Bar chart indicating workplace retirement plan balances may support about 50% to 60% of the income participants expect in retirement.
Savers and sponsors feel optimistic about retirement

68% of participants say they are on track and 66% of employers agree. It's possible that stronger markets and investment performance are contributing to some of that optimism.

Looking beyond sentiment at savings behavior

Our analysis shows savers are only on track to replace about 50 –60% of the retirement income they expect their workplace savings to provide.

Americans understand they need to save more

Participants say they need to contribute 15% of pay but contribute only 10% today, and over half may need to reduce contributions as financial pressures mount.

Closing the readiness gap with new capabilities

Participants are responding by looking to new capabilities and sponsors are expanding their retirement toolkits.

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Confidence level Projected plan balance Projected actual annual income from plan Expected annual income from plan Share of expected income covered

 

 We asked different generations if they felt on track for retirement. Based on their savings behavior, we projected their plan balance at retirement. We calculated their actual projected annual income from their plan.  And then we asked savers how much annual income they expected their plan to cover.   

Gen Z

Most runway generation

 76% $649,799 $28,062 $47,999 58%

Millennials

Sandwich generation

 73% $540,686 $23,349 $43,620 54%

Gen X

Retirement window generation

 60% $404,106 $17,450 $34,704 50%

Salary proxies and contribution rate (median 10%) derived from survey participant data. Assumptions include retirement age 65 and starting age 25 and do not include company stock or DB to salary ratio (pension income replacement).

The capability gap

Capacity challenges vary across life stages

Many savers face practical barriers to closing the gap, and each generation experiences retirement challenges differently and differently than generations past.

woman wearing a blue shirt representing generation x
Generation X

Retirement window generation 

Health risks and longevity concerns

Experiencing the years in and around retirement when outcomes are fragile. The first generation largely retiring without a pension.

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Man wearing yellow headphones on a phone representing millennials
Millennials

Sandwich generation

Supporting family while saving

More likely to reduce contributions while balancing growing retirement balances and competing financial priorities.

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Woman on her phone representing generation z
Generation Z

Most runway generation

Debt and income concerns reshape saving behavior

More likely to reduce retirement savings due to debt and lower confidence in future income, while placing greater emphasis on long-term investing and exploring options.

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New capabilities

The next frontier: 'Personal Pensions'

Participants and sponsors are converging around the capabilities that made pensions powerful: professional management, diversified investing, and retirement income. Today, workplace plans increasingly have the opportunity to deliver those same capabilities through active management, private markets, and guaranteed income.

55%
of savers with a preference prefer active target date funds over index
45%
of sponsors are considering adding private market exposures
88%
of savers want secure income options in their workplace plan
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AI IN RETIREMENT PLANNING

Technology and AI are accelerating engagement

Participants are asking for more personalized support—from tools that show whether they're on track to tailored education and guidance. Technology and AI are accelerating the way sponsors engage more effectively and at greater scale.

picture of a robot arm representing the impact of AI in retirement
81% of savers want tailored guidance
1 in 4 sponsors are already using AI-generated guidance
Still, advisors remain the most trusted source for retirement guidance
Learn about the impact of AI on retirement readiness Learn about the impact of AI on retirement readiness

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