Data & Research May 20, 2025

Survey Finds Participants Want Retirement Plans to Support Guaranteed Income

Almost nine in ten 401(k) plan participants believe employers have a responsibility to help ensure retirement income security, according to a survey by Nuveen and the TIAA Institute..

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An overwhelming majority (93%) of American 401(k) plan participants said it is important that they have the option to convert their savings into guaranteed monthly payouts, according to a Nuveen and TIAA Institute study released Monday.

The survey of 2,153 401(k) participants also found that 87% of respondents believe employers have a responsibility to help ensure retirement income security. Participants from younger generations are more apt to strongly agree: 57% of Gen Z and 54% of Millennials, compared with approximately 30% each of Gen X and Baby Boomers.

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In comparison, fewer than 60% of respondents expressed this view in a similar 2021 TIAA survey. 

“Today’s workers see guaranteed retirement income not just as a personal goal—but as a shared mission with their employer,” said Brendan McCarthy, head of retirement investing at Nuveen, which was acquired by TIAA in 2014, in a statement.

The 2025 survey highlighted a growing awareness among workers of a need for income options within current 401(k) offerings. While these plans are the main savings initiative for 79 million Americans, with assets totaling $6.8 trillion, they typically lack built-in options to convert assets accumulated in a plan into dependable retirement payouts, often referred to as “retirement income.” 

About 90% of participants surveyed said they would enjoy the inclusion of a fixed annuity in their 401(k) plan, showing interest in using such tools to secure monthly payments throughout retirement. A similar majority also favored integrating fixed annuities into target-date investments.

Still, many retirees struggle to establish plans to effectively withdraw money for retirement after spending a lifetime building the savings. In the survey, 21% of respondents said they had thought “a lot” about how to withdraw money from their 401(k) plan to provide retirement income. 

“While retirees are increasingly interested in lifetime income solutions, many struggle to develop effective withdrawal strategies,” said Surya Kolluri, head of the TIAA Institute, in a statement. “The challenge lies in converting retirement savings into sustainable monthly income—a process that remains unclear to most participants.”

Retirement Planning and Distribution Guidance

Four in 10 (42%) 401(k) participants have received retirement planning advice from a professional adviser or advisory service within the past two years, the survey found. This was more common among men (46%) than women (35%), and Baby Boomers (46%) compared with Gen Z (36%).

The vast majority (about 90%) received advice about how much to save (86%) and how to invest their savings (91%), while about four in five were advised about when they can afford to retire (79%) and how to withdraw money from their retirement savings to provide income in retirement (79%).

Of those who received withdrawal advice, 58% were advised to use an annuity and 15% were advised to not, while the possibility of annuitization wasn’t discussed with the remaining 27%. More than two-thirds (78%) of Baby Boomers received advice on how to withdraw money from their retirement savings, but less than half (46%) of Baby Boomers receiving withdrawal advice were advised to use an annuity.

Data & Research May 20, 2025

Parents Face Competing Financial Priorities

According to 88% of parents, their financial adviser was helpful in making financial decisions related to their children.

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Parents are balancing numerous financial priorities, as both near-term considerations and the distant future compete for their spending. According to a recent research study from Ameriprise Financial, “Parents & Finances,” parents’ top financial goals are: saving for retirement (59%), paying for their children’s education (39%) and managing day-to-day living expenses (36%).

Parents responding to the survey reported finding joy in parenthood and striving to give their children the best in life; however, they are concerned the trade-off decisions they make today will impact their financial future.

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Turning Financial Goals into Action

Working with a financial adviser can help parents feel empowered and in control financially, Ameriprise said, so that they can spend more time focused on their children.

According to Ameriprise data, parents recognize the important role a financial adviser plays: 74% of respondents said it is important to seek professional advice when planning for their children’s future, while 88% said their adviser was helpful in making financial decisions related to their children.

Among parents who used an adviser, the most discussed topics were saving for children’s education (60%), passing down financial values (52%) and achieving family goals (51%).

More than half (56%) of parents have introduced their children to their adviser.

Parents Focus on College Costs Early

The research study indicated that that most parents (89%) plan to contribute financially to their child’s college education—a commitment that often begins early. Nearly half (49%) reported they started saving before their child turns or turned 5, and a dedicated 9% reported beginning even before their child was born.

This proactive planning comes in response to the steep and rising cost of higher education. According to the Education Initiative, the average annual cost of college in the United States is $38,270 per student, which includes tuition, books, supplies and living expenses. When factoring in the potential interest on student loans and the loss of income due to time spent studying instead of working, the total investment in a bachelor’s degree can exceed $500,000 over a lifetime.

Raising Financially Savvy Children

The majority (72%) of report respondents said they take on the responsibility for teaching their children about money. The leading ways parents encourage their children to make smart financial decisions include: opening a savings account for them (76%); encouraging them to save for a short-term goal (68%); and stopping them from spending money unwisely (61%).

Most parents (88%) said they give their children an opportunity to practice financial lessons by paying them for actions and achievements, such as good grades, chores, and being kind and helpful.

The study, fielded in January 2025, surveyed more than 3,000 American parents at least 25 years of age with at least one child younger than 30 years old.

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