BlackRock: Retirement Confidence Rising, But Many Savers Face a Reality Gap
Americans are optimistic—perhaps a little too optimistic—about how well they are saving for retirement, according to findings released today in BlackRock’s 11th annual Read on Retirement survey, which reveals a growing disconnect between confidence and reality.
While most employees and employers believe a secure retirement is within reach, BlackRock’s analysis shows projected savings may fall well short, underscoring the need for solutions that help people save more, invest smarter, and generate lasting income.
The report from the world’s largest asset manager found nearly seven in 10 workplace savers (68%) say they’re on track for retirement—up 16 points since the survey began. Employers share that optimism, with 66% believing most employees are on track. Yet BlackRock estimates that current workplace balances will only support 50-60% of the retirement income people anticipate those balances will generate.
“Confidence is growing, but for too many Americans, retirement reality won’t match retirement expectations,” said Jaime Magyera, Head of Retirement and Head of U.S. Wealth Advisory at BlackRock. “Bridging that gap is one of the defining challenges facing our retirement system today. Workers need help making their savings work harder and turning them into reliable income that lasts. That’s why workplace plans are evolving to combine professional management, expanded investment access, and guaranteed income solutions.”
A key challenge is capacity. Workplace savers recognize the gap, but many face practical barriers to closing it. Median contribution rates are at 10%, well below the 15% people say is necessary to retire comfortably. At the same time, more than half say they may need to reduce contributions over the next 12 months, underscoring the challenge of balancing long-term retirement goals with ongoing financial pressures.
The survey shows growing demand for investment capabilities beyond traditional savings strategies, including guaranteed income, active management and private markets. In addition, more than half of savers are interested in AI-assisted retirement guidance, and digital tools are making tailored engagement more scalable for sponsors. In a press release today, BlackRock said these trends are accelerating the transition from accumulation-focused retirement plans to “personal pensions”—professionally managed solutions that combine growth, retirement income, and active management to improve participant outcomes.
Retirement readiness not just savings
The report finds growing concern about turning savings into reliable income over increasingly long retirements, a challenge recognized by participants, retirees, and plan sponsors alike.
• Participants: Nearly two-thirds (64%) worry about outliving their savings. More than three-quarters (76%) believe their generation will have less certainty of retirement income than previous generations—a survey-series high. Nine in 10 want secure income-generating options in their workplace plan.
• Retirees: 89% say they would have benefited from guaranteed income through their workplace plan, while 92% say guaranteed income made a bigger difference than expected and believe employers should offer secure income options.
• Plan Sponsors: Nearly all feel responsible for helping participants generate and manage retirement income, and 32% plan to incorporate guaranteed income into their qualified default investment alternative (QDIA).
Openness to new approaches
The report finds growing demand for investment solutions designed to improve retirement outcomes, particularly when offered through professionally managed workplace plans.
• Private Markets: Nearly three in four participants (73%) are interested in accessing private markets through their retirement plan. Interest is also growing among plan sponsors, with 45% considering private market exposure, up 21 points from last year.
• Active: 90% of plan sponsors believe active managers can consistently outperform the market, 30% are considering adding active strategies and 37% have added them in the last 12 months. Participants also show a preference for active management, with 55% favoring active target date funds versus 45% who prefer index-based alternatives.
“The next chapter of retirement is the personal pension.”
Nick Nefouse, Global Head of Retirement Solutions and Head of LifePath at BlackRock
“The next chapter of retirement is the personal pension,” said Nick Nefouse, Global Head of Retirement Solutions and Head of LifePath at BlackRock. “For decades, pensions combined professional management and lifetime income. Today, we have an opportunity to bring those same principles into the defined contribution system and help more workers retire with confidence.”
The report finds that retirement needs vary significantly across generations and demographics, reinforcing the need for more personalized guidance and solutions.
• Generational: Retirement priorities shift across life stages. Gen Z is embracing new technologies and retirement innovations, Millennials are balancing long-term saving with competing financial and family demands, and Gen X is increasingly focused on retirement income and longevity as retirement nears.
• Women: Retirement confidence among women has improved, but preparedness continues to lag. Confidence remains 13 points below men, workplace retirement balances are roughly 40% lower, and concerns about generating retirement income remain higher. Despite living longer on average, women are also 44% less likely than men to adopt guaranteed income solutions.
Technology, AI accelerating engagement
Technology is emerging as a key enabler of accelerated engagement in retirement, with growing interest in AI-powered guidance among both participants and plan sponsors.
• Participants: More than half (53%) are interested in AI-assisted retirement guidance. 81% want personalized investment recommendations, and the same share want digital tools that clearly show whether they are on track for retirement.
• Plan Sponsors: More than half (54%) use analytics to tailor participant communications, while 48% are enhancing digital platforms and personalized education tools. Nearly half (45%) are exploring AI-driven engagement tools, and 24% already use AI-generated guidance.
The 2026 BlackRock Read on Retirement survey provides 11 years of insights from an annual research study of workplace savers and retirees in the U.S. The survey was conducted by Escalent, and reflects the experiences of Americans participating in the workplace retirement system.
SEE ALSO:
• Lifetime Income Boosts 401(k) Spending Power by 22%, BlackRock Finds
• Rise of AI Could Widen Wealth Gap Unless Investing Access Expands: BlackRock’s Fink
• Advisors Expect Steady Growth Amid AI Advancements, Market Volatility
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.