BlackRock Survey Reveals Record Retirement Confidence Gap Between Employees and their Employers

September 08, 2025 at 07:00 AM EDT

10-year anniversary of BlackRock Read on Retirement® report highlights:

Nearly two-thirds of workplace savers feel on track with their retirement savings—up 23% over the last decade.
While savers feel increasingly confident, only 38% of employers believe the majority of their employees are on track—a record low.
The number of retirees who feel prepared financially for the rest of their retirement reached an all-time low at 27%, down from 43% in 2020.
Savers are increasingly seeking professionally managed solutions and are interested in guaranteed income to help address concerns around outliving savings.
100% of employers feel responsible for helping participants generate guaranteed income and many are looking for ways to close the savings gap and enhance returns through actively managed target-date funds and private markets solutions.

BlackRock’s tenth annual Read on Retirement® report marks a decade of insights into the evolving landscape of retirement readiness. This year’s findings reveal a striking confidence gap: nearly two-thirds (64%) of workplace savers feel on track with their retirement savings. In contrast, only 38% of plan sponsors believe that the majority (60%) of their employees are on track for retirement—a record low—highlighting an urgent need for targeted education, innovative solutions and retirement planning support.

While savers’ confidence is up 23% over the past decade, buoyed by long-term market growth, short-term confidence has tracked market swings and is down 4 points this year amid heightened volatility. Economic uncertainty has contributed to a decline in savings rates this year—dipping to a median 10% in 2025, from 12% in 2022.

“A decade of insights on retirement readiness data reveal a striking paradox: while saver optimism about retirement is rising, employer confidence and actual savings contributions are falling—highlighting a disconnect between how prepared people feel and how prepared they likely are," said Jaime Magyera, Head of BlackRock’s Retirement business. “This gap is a call to action. While much progress has been made to help educate and simplify saving for retirement, savers and employers alike are seeking more solutions—like professional guidance and access to lifetime income and private markets—to help people build confidence and afford longer retirements. At BlackRock, we’re accelerating our efforts to provide tools so more people can invest better to live better, ready for their ‘what’s next.’”

Retirement Confidence Grows—But Demographic Gaps Remain

While overall confidence among retirement savers has climbed steadily over the past decade, the story beneath the surface reveals disparities.

Gen X, the closest generation to retirement, is feeling the pressure: just 54% say they’re on track for retirement—the lowest of any generation. While 76% of Gen Z feels on track, they face a different hurdle: nearly half (47%) are saving less than they’d like due to the burden of student loan debt, despite reporting higher confidence than Gen X.

The gender gap in retirement confidence also persists—84% of men feel secure about their savings, compared to 73% of women. While confidence has risen 22% across both groups since 2016, closing the gap remains critical, especially given women’s longer lifespans.

These findings highlight the need to do more to address generational and gender-specific challenges.

Seeking Professionally Managed Solutions

Savers are increasingly asking their employers for more help with retirement planning. 50% prefer to have their investments managed for them, up from 36% in 2017. The target-date fund—a professionally managed strategy which BlackRock pioneered in 1993 to simplify retirement investing by automatically adjusting portfolios as savers age—has steadily become the investment vehicle of choice. 75% say it would be helpful if their employer automatically reallocated their assets by age like a target-date fund would, up from 65% in 2019. Today’s retirees agree: 91% wish they had access to a solution like a target-date fund, an increase from 84% in 2020.

Guaranteed Income Boosts Security

Only 27% of today’s retirees say they are very financially prepared for the rest of retirement, a sharp decline from 43% in 2020. In this climate, access to guaranteed income is more critical than ever. 86% of workplace savers now want it - a steady rise from 80% in 2019 - and 74% would save more if their plan had an option for it. Among retirees, 91% believe employers should provide secure income options in the plan. Employers are listening: for the first time, 100% say they feel responsible for helping participants generate income during retirement.

Since its launch in April 2024, LifePath Paycheck®, BlackRock’s target-date solution offering the option for lifetime income payable by insurers selected by BlackRock, is now available through employer-sponsored plans reaching more than 350,000 U.S. workers. With more than $24 billion in assets under management (as of June 2025), it is considered to be the fastest growing lifetime income target-date strategy in the defined contribution market.

Exploring Ways to Enhance Returns

Plan sponsors are increasingly exploring alternative assets. Nearly one in four (24%) plan sponsors said they are considering adding alternative assets to their plan.

BlackRock’s recent research highlights the potential upside, estimating that thoughtful structuring and strategic allocation of private assets alongside public equities and fixed income in a target-date solution could generate about 15% more money in a participant’s 401(k) over 40 years. The paper underscores the growing role of private assets as key drivers of economic growth. While there are questions around liquidity, fees and transparency, integrating private assets into traditional portfolios can offer higher risk-adjusted returns, greater diversification, more stable cash flows and protection against inflation—making them a potentially compelling addition to retirement plan design.

Both employees and employers agree that active strategies can help boost retirement returns. 80% of plan sponsors believe that active managers can consistently outperform the market, and 83% agree that actively managed target-date funds can cushion the impact of volatility for participants. Savers are equally enthusiastic: 80% express interest in using an actively managed fund for their retirement savings.

As market uncertainty persists, active management is emerging as a key lever for driving better retirement outcomes—and both sides of the retirement equation are paying attention.

About The BlackRock Read on Retirement

The 2025 BlackRock Read on Retirement® survey provides a decade of insights from an annual research study of workplace savers and retirees in the United States which was conducted between April 10 and May 19, 2025. Over 450 plan sponsors were also surveyed between February 2 and March 19, 2025. The survey is executed by Escalent, an independent research company, with all respondents interviewed using an online questionnaire.

About BlackRock

BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to our clients and a provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate.

This material is intended for information purposes only, and does not constitute investment advice, a recommendation or an offer or solicitation to purchase or sell any securities, funds or strategies to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The opinions expressed are subject to change without notice. Reliance upon information in this material is at the sole discretion of the reader. Investing involves risks.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250908113913/en/

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andreia.cheongashack@blackrock.com

212-810-3677

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BlackRock Survey Reveals Record Retirement Confidence Gap Between Employees and their Employers

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