As workers plan for retirement, new research from the TIAA Institute and Nuveen find that only 22% of individuals have greatly taken into consideration how they’re going to withdraw savings later in life.
The firms’ 2025 Participant Sentiment Survey assessed participants’ retirement fluency will a 15-question survey covering Social Security benefits, Medicare, saving for retirement, making retirement plan withdrawals, and long-term care.
A majority (71%) have thought “at least somewhat” about how they will draw savings in retirement, but the findings show a serious knowledge gap between respondents. Workers correctly answered only about one-quarter of the TIAA and Nuveen’s survey, and nearly half did not correctly answer any questions about retirement withdrawals. Further, just one-third of workers can estimate how long individuals will live past age 65.
Those who underestimate longevity in retirement run the risk of outliving assets later in life, especially as the availability of traditional pension plans declines. The latest findings from the Bureau of Labor Statistics (BLS) show that only 14% of private-sector workers today have access to defined benefit (DB) plans.
“For decades, a pension was America’s retirement promise, a check in the mailbox every month, for life. That promise is gone for most workers,” said Brendan McCarthy, head of Nuveen Retirement Investing. “We are now watching the first generation of Americans retire almost entirely without guaranteed income beyond Social Security. They saved diligently in their 401(k)s, and now they’re asking a question no generation has faced quite like this: how do I turn a pile of savings into a paycheck that lasts?”
A combination of stronger education and tools, along with accessibility to lifetime income options, could help workers better prepare for a successful retirement. Employees surveyed reported wanting “structured, meaningful guidance” from employers, with almost all (94%) emphasizing that companies should provide resources on how to make retirement withdrawals. Nearly half (49%) even say it’s the employer’s responsibility to provide guidance.
“You can’t solve for income that lasts a lifetime if you don’t understand how long that lifetime might be,” said Surya Kolluri, head of TIAA Institute. “That’s why the combination of better education, stronger tools, and lifetime income solutions within the plan itself is so important. When employers bring all three together, it works.”
Employers who adopt elevated resources tailored to participants’ career stages, such as interactive and non-interactive planning tools, find that workers are much more engaged with retirement planning. Fifty-three percent of employees who utilize these resources report feeling “very confident” in their withdrawal strategy, compared to 28% who did not have access to tools.
Employees who engaged in these resources also found them to be “more helpful, engaging, and trustworthy.”
“What this research tells us is that awareness and access are the missing links,” said McCarthy. When employers invest in the right combination of interactive and educational tools, and pair them with smart plan design, including lifetime income solutions embedded in target date funds, employee confidence improves dramatically.”
TIAA and Nuveen’s research surveyed more than 2,100 401(k)employees across career stages. Respondents were divided by career stage, at 1,000 late-career workers (age 55 or older), 500 mid-career (age 35–54), and 500 early-career (age 18–34).