401(k) participants are increasingly looking for plans that adapt to their particular needs, finds Invesco’s newly released Spring 2025 Defined Contribution Retirement Pulse Survey.
“We found that 93% of participants showed interest in personalized investments in their DC plan—that’s meaningful.”
Invesco’s Greg Jenkins
Based on responses from over 500 defined contribution plan participants, the data reveals a powerful shift in how Americans want to save for retirement and finds a growing demand for personalization, simplified communication, and support for the financial realities workers face today.
“We are entering a time where DC plan participants expect more personalization. In our survey, we found that 93% of participants showed interest in personalized investments in their DC plan—that’s meaningful,” said Greg Jenkins, Managing Director and Head of Defined Contribution Relationship Management at Invesco. He added that 76% said they were open to paying more for personalized investments, depending on the quality.
The findings paint a clear picture: retirement plans can no longer be one-size-fits-all. Personalization, flexibility, and trust-building communication are becoming non-negotiable elements for driving participant engagement and better outcomes.
More key findings:
• Beyond investments, participants are seeking flexibility, and humanized support—most particularly women.
• Behavioral shifts show a growing preference for “do-it-with-me” planning, signaling a desire for collaborative guidance.
• Portability is key: 83% want their contribution rates and auto-escalation features to move with them if they change jobs.
• Financial stressors remain: cost of living is the No. 1 savings barrier, while Millennials cite student loans and childcare as additional obstacles.
• Participants are increasingly cautious with single-fund solutions, favoring diversification and risk-aligned strategies over simplicity alone.
“Plan sponsors need to be aware that the demand for personalization by participants is real and measurable,” Jenkins added. “Most providers have resources or services available and these should be explored. It’s also important that plan sponsors push the envelope with providers and demand more services on behalf of their participants.”
While noting that much progress has been made, Jenkins said the industry can better meet employees “where they are” by offering more personalization options that suit a variety of people.
“Our survey found that there is a rich gamut of needs—some wanted more comprehensive guidance while others preferred a tailored investment approach that allows for flexibility,” Jenkins said. “Additionally, personalization doesn’t need to be ‘free’—participants are open to paying an additional cost for high quality and adding these services should be simple and straightforward for plan sponsors.”
Click the link to access Invesco’s Spring 2025 Defined Contribution Retirement Pulse Survey.
SEE ALSO:
• Large-Cap Value Investing in 401(k) Plans with Invesco’s Devin Armstrong
• Plan Sponsors Count on Personalization for Improved Retirement Outcomes
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.