Allspring Study: Retirement Savers Want Guidance But Not to Lose Control

Allspring Global Investments, a global asset management firm, has released a study examining the attitudes and behaviors of U.S. retirement savers. Titled "The Retirement Decisions Defaults Can't Address," the research suggests participants generally welcome guidance but are resistant to losing control or flexibility, posing challenges for plan design.

The study, which surveyed over 1,500 U.S. adults, found that while participants trust employers with plan design, more than half expect to move their savings out of a plan upon retirement, particularly if they work with an advisor. Companies aiming to retain participants need to focus on low costs, provide guidance, and offer retirement and income-focused investment choices.

Key findings also highlight a tension between the desire for guaranteed retirement income and the importance of control. Nearly one-third of participants want guaranteed income, yet 70% consider access and control equally important. This indicates that providers of in-plan annuity options must carefully balance these competing priorities.

Furthermore, target-date funds (TDFs), while popular during accumulation, see a sharp decline in use among retirees. This suggests TDFs may not adequately address the more nuanced needs of those in or near retirement. The role of advisors is also significant, as participants with professional advice are more likely to move assets out of plans, prompting employers to consider their objectives regarding participant retention versus transition facilitation.

Nate Miles, head of Retirement at Allspring Global Investments, stated that retirement decisions become more personal closer to retirement. The research underscores the importance of recognizing individual definitions of success and offering flexibility and choice. Firms that can help individuals navigate complex decisions in ways that reflect personal priorities are likely to be most effective.