Two-thirds of retirement savers don’t feel like they have control over critical decisions in their workplace retirement plans, according to new research from Pontera examining how Americans are saving for retirement.
The study found participants struggle with complex rules, multiple account types, and uncertainty about their savings strategy.
“When people struggle to feel confident and in control of their retirement accounts, it creates a real need for clarity and more guidance—particularly from professionals who are equipped to advise, guide, and holistically plan on an individual-by-individual basis,” said Yoav Zurel, CEO at Pontera, adding that 70% of Americans believe their financial planning needs improvement.
The study analyzed responses from 1,000 U.S. retirement savers and 400 registered financial advisors and explored how various challenges—an inflationary environment, volatility, investment complexity—have impacted retirement savers as they plan for their futures. It also uncovered key differences between savers who sought/utilized professional advice from an advisor or wealth manager and those who chose to navigate retirement on their own. Notably, savers with an advisor are more than 2x as likely to have over $250,000 in retirement savings than those without.
More key findings include:
- The rising cost of living and inflation are the No. 1 concerns across all generations of Americans.
- Nearly 1 in 4 retirement savers have less than $25,000 across retirement and college savings accounts.
- Less than half (42%) of retirement savers have over $100,000 in savings.
Rising costs of living and inflation were biggest concerns across all generations of U.S. savers, followed closely by market volatility and economic uncertainty. This uncertain economic environment caused a number of savers to rethink how they are approaching their investments.
The majority of savers say they have made changes to their retirement investments in the past year due to market uncertainty. Notably, nearly a quarter of savers have either reduced or paused contributions or stopped checking these accounts to avoid stress.
In a Sept. 25 press release, Pontera said the findings highlight the gap between savers’ intentions and their confidence, underscoring the critical role advisors can play in helping clients navigate complexity and make informed retirement decisions.
Confidence remains out of reach for many savers
Fewer than 1 in 5 Americans feels highly knowledgeable and confident about managing their retirement and college savings accounts, emphasizing just how overwhelming the system feels. What may seem straightforward to an advisor is often experienced by savers as confusing, restrictive, or difficult to navigate—creating clear opportunities for advisors to step in and provide clarity, confidence, and direction.
The survey revealed several additional findings pointing to the need for additional guidance:
- 42% of savers report that managing their accounts makes them feel stressed, anxious, cautious or confused.
- 76% of advisors surveyed reported that their clients have expressed frustration with workplace retirement and savings accounts in the past year.
- More than half of women with advisors (55%) report at least $100,000 saved—nearly double the share of women without advisors (29%).
These challenges are magnified when savings are spread across multiple accounts, leaving savers without a clear picture of their financial future. Pontera’s release said advisors who can integrate held-away workplace retirement accounts into the broader portfolio are well-positioned to bridge this gap.
New York City-based Pontera is a fintech company helping retirement savers receive professional 401(k) account management from their financial advisor. The full survey findings can be found in this report on Pontera’s website here.
SEE ALSO:
• Pontera, Manulife John Hancock Collaborate to Better Manage Held-Away 401(k)s