Allspring Releases Retirement Study on Guidance vs Control in Retirement Planning
Allspring Global Investments released a retirement study titled 'The Retirement Decisions Defaults Can't Address,' highlighting the tension between guidance and control for retirees. The survey of over 1,500 U.S. adults found that while participants generally welcome help with decision-making, they are reluctant to relinquish control or if their individual definition of success is not recognized. Key findings include a strong trust in employers regarding plan design but also an expectation among more than half of respondents to move savings at retirement—especially when working with advisors. The study emphasizes the importance for sponsors to keep costs low, provide guidance, and offer income-focused investment choices. It also reveals that nearly one-third want guaranteed retirement income, though access and control are equally valued by 70%. The research further shows a decline in target date fund usage among retirees compared to near-retirees, suggesting these funds may not meet the nuanced needs of those entering or already in retirement.
Topics: employer-sponsored plans investment advice retirement savings target date funds (TDFs)