Retirement
The Retirement Decisions Defaults Can’t Address
New research shows where defined contribution plan participants and retirees benefit most from defaults and where they value choice—from rollovers to target date funds to income solutions and more.
Retirement realities
2026 survey insights
56%
of near-retirees expect to move workplace savings elsewhere at retirement.
7 in 10
near-retirees want both income protection and control of their investments.
55%
of near-retirees hold target date funds; that drops to 17% for retirees.
92%
of “tax-efficient” near-retirees and retirees would take action if the tax savings were high enough.
34%
of near-retirees are interested in a basic annuity; that jumps to 66% if the remaining balance goes to heirs.
Retirement decisions require both simplicity and agency
Retirement savers generally welcome help with complex decisions, but their preferences become more selective when solutions require meaningful trade-offs. Automation can simplify saving and portfolio construction, while decisions involving access, ownership, legacy, taxes, and flexibility often require greater participant involvement.
Trust does not guarantee retirement plan retention
Employer trust alone may not be enough to keep retirement assets in a workplace plan. Although 70% trust their employer at least somewhat on plan design, 56% of near-retirees expect to move their workplace savings at retirement. Lower costs, retirement-focused investment options, and flexible withdrawals help make the case for remaining in plan. Sponsors should first determine their primary goal: to support accumulation or to continue serving participants through retirement.
Retirement income solutions should balance protection and control
Many participants want predictable retirement income without surrendering liquidity, ownership, or legacy options. Interest in an annuity increased when hypothetical savings were higher. Interest almost doubled for an annuity that would allow a remaining balance to pass to heirs. Income choices should be framed around participant priorities rather than presented as a single universal solution.
Target date funds may only solve part of the challenge
Target date funds can support diversification, portfolio allocation, and rebalancing, but retirement introduces decisions that asset allocation alone cannot resolve. These include withdrawals, income generation, taxes, liquidity, legacy, advice, and asset destination. Target date fund use declines sharply between near-retirees and retirees, reinforcing the need for broader retirement-focused options and guidance as participants move from accumulation into decumulation.
Retirement success is personal
Similar account balances do not necessarily produce similar retirement priorities. One group of near-retirees and retirees emphasizes safety and access, others focus on real returns, and another group prioritizes tax efficiency. Effective plan design should consider how participants define success. Defaults remain valuable for broadly applicable, easily reversible actions, while personalized guidance becomes more important when decisions carry lasting consequences.
The Retirement Decisions Defaults Can’t Address
New research shows where defined contribution plan participants and retirees benefit most from defaults and where they value choice—from rollovers to target date funds to income solutions and more.
Retirement insights
Uncover why retirees are choosing high-tax states over tax havens and how municipal bonds could be their secret weapon to financial security.
Andy Hunt, senior investment strategist and head of Pension Strategy for Allspring’s Global Client Strategy team, brings decades of experience in tailoring fixed income exposure to help Allspring clients meet their goals.
Frequently asked questions
Common questions about retirement research and plan defaults
- Which retirement decisions are best suited to defaults?
Defaults are most useful for broadly applicable and relatively easy-to-change decisions, such as enrollment, savings escalation, diversification, and rebalancing. More consequential or difficult-to-reverse choices can require guidance and participant involvement.
- What makes participants want to keep their assets in a workplace retirement plan?
Participants may move assets despite trusting their employer. Lower costs, retirement-focused investments, and flexible withdrawal options are among the leading reasons they may stay.
- What do participants want from retirement income solutions?
Many want predictable income while retaining access, control, and the ability to leave assets to heirs. The relative importance of these features can change with a participant’s available savings and personal priorities.
- Are target date funds enough for retirement planning?
Target date funds can address many portfolio construction decisions, but they do not resolve every question involving withdrawals, taxes, income, liquidity, legacy, advice, or asset destination.
- How should plan sponsors define retirement success?
Success metrics can consider both financial outcomes and participant and retiree priorities, whether that’s tax efficiency or real returns. Plan objectives should also reflect whether the plan is intended primarily for accumulation or designed to support participants through retirement.
