Financial services employers can help 401(k) participants reach retirement more confidently
Assessing retirement readiness in the financial services industry
Nuveen recently collaborated with the TIAA Institute to survey over 2,100 401(k) participants, including 219 from the financial services industry. The goal: examine how prepared participants are for retirement. Survey topics included retirement fluency and longevity literacy, planning for withdrawals during retirement and experiences with employer-provided resources. The findings show that many participants are unprepared, and there is opportunity for plan sponsors to help through better tools, education and plan design..
This summary discusses findings from the Nuveen and TIAA Institute 2025 Participant Sentiment Survey on Lifetime Income for 401(k) participants employed in the financial services sector. Access findings for all 401(k) participants.
Finding 1: Too many 401(k) participants are planning in the dark
Many 401(k) participants at financial services companies lack the knowledge needed to make confident retirement decisions. Important gaps include how to prepare for and assess retirement scenarios and understanding how long retirement may last.
On average, surveyed participants answered just 37% of retirement fluency questions correctly across topics such as Social Security, Medicare benefits, savings and withdrawals for retirement, and long-term care. In addition, only 40% correctly identified how long a 65-year-old is likely to live.
Implications for plan sponsors
Employers should provide clear, robust educational resources on retirement- and longevity-specific topics, delivered through multiple approaches, including interactive tools tailored to participants’ career stages.
Finding 2: There is a withdrawal planning gap
While 70% of participants at financial services companies have considered how they will withdraw retirement savings (referred to as “withdrawal planners”), only 26% have given the issue significant thought. Yet demand for guidance is strong, and plan sponsors are poised to help close the gap. 95% of withdrawal planners say employer-provided withdrawal resources are important, including 53% who say they are very important. Meanwhile, a combined 91% believe employers should provide guidance or that doing so would be valuable.
Implications for plan sponsors
Employers should provide comprehensive withdrawal planning resources designed to foster understanding, engagement and confidence. Also, given participant options. demand for lifetime income solutions including annuities,1 employers should ensure content covers annuitization.
Finding 3: The participant experience is critical
Access to resources and guidance is only part of the equation. The survey showed that participants who engage in withdrawal planning are likely to use employer provided resources and view them as helpful, engaging and trustworthy. While nearly two-thirds of withdrawal planners in the sector use either interactive tools or non-interactive resources, far less (45%) use both. Lack of resource usage can erode retirement confidence. Even among withdrawal planners at financial services companies, only 43% are very confident they will choose the best way to withdraw from their 401(k) plans.
Implications for plan sponsors
Plan sponsors should carefully evaluate not only what resources are offered, but how participants experience them. Employers that provide tools with intuitive design, clear communication and thoughtful integration across the participant journey can boost confidence and build trust while supporting better retirement outcomes.
About the TIAA Institute
Since 1998, the TIAA Institute has helped advance the ways individuals and institutions plan for financial security and organizational effectiveness. The Institute conducts in-depth research, provides access to a network of thought leaders and enables those it serves to anticipate trends, plan future strategies and maximize opportunities for success. To learn more, visit the TIAA Institute .
About Nuveen
Nuveen, the investment manager of TIAA, offers a comprehensive range of outcome-focused investment solutions designed to secure the long-term financial goals of institutional and individual investors. Nuveen has $1.4 trillion in assets under management as of 30 June 2026, and operations in over 25 countries. Its investment specialists offer deep expertise across a comprehensive range of traditional and alternative investments through a wide array of vehicles and customized strategies.
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Endnotes
1 Source: Nuveen and the TIAA Institute, 2024, “Retirement savings to retirement income: 401(k) participant perspectives”
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