Allspring's 2025 Retirement Study Highlights Escalating Financial Insecurity Among Americans
In a groundbreaking study conducted by Allspring Global Investments™, the findings for the 2025 retirement landscape reveal alarming trends regarding financial security among retirees and those nearing retirement. Allspring, a prominent asset management firm boasting assets under advisement totaling $629 billion, has unveiled insights from its 2025 retirement study, titled "By Default or By Design?" This study, conducted alongside Escalent, surveyed over 1,500 U.S. adults and laid bare the urgent challenges faced by the American retirement system.
One of the starkest revelations from the study is the waning sense of financial security among retirees and near-retirees. Only 60% of these individuals feel financially secure, with a notable decline in confidence particularly among women and those in the older near-retiree demographic. The data indicates a troubling trend where younger retirees, aged 65-69, experienced a significant drop of 15% in their confidence levels compared to the previous year, while older near-retirees of the same age group saw a decline of about 8%.
The study's findings suggest a pressing need for tailored retirement solutions rather than one-size-fits-all approaches, particularly when it comes to investment options. Among the near-retirees surveyed, a substantial 84% expressed a preference for more diversified investment strategies over typical target date funds. This indicates a growing awareness that individualized financial plans are crucial for meeting the varied needs of today's retirees.
Tax efficiency has emerged as another critical area of focus highlighted in the report. Shockingly, only 20% of retirees and near-retirees utilize efficient withdrawal strategies when it comes to managing their assets. The study underscores the importance of understanding asset location alongside asset allocation. Customized tax planning, it argues, could significantly improve overall retirement outcomes, helping individuals strategize their withdrawals in a way that maximizes the duration of their savings.
Additionally, the relevance of Social Security as a source of income in retirement remains paramount, yet many individuals lack adequate knowledge about it. In the survey, merely 10% of near-retirees were able to accurately answer questions related to Social Security, with most underestimating the benefits of delaying claims, which can increase monthly benefits by an impressive 80%. This knowledge gap presents another hurdle that must be addressed to ensure retirees can fully leverage their available resources.
As technology progresses, so does the role of artificial intelligence (AI) within the retirement advisory space. While the study revealed a pervasive distrust of AI—43% of those with advisors expressed skepticism, rising to 53% among those without—it also pointed out the potential benefits of AI in enhancing personalization in retirement planning. By focusing on education and equipping both advisors and workers with resources about tax minimization and income optimization, AI can play a transformative role in improving retirement outcomes. The expectation is that, over the next few years, AI will support advisor efforts by offering efficient solutions for asset allocation and withdrawal strategies. However, a prudent approach that combines technology with human expertise remains essential.
"Navigating retirement today requires more than just default solutions, particularly for mature participants," noted Nate Miles, head of Retirement at Allspring. He emphasized the necessity of understanding and addressing the diverse needs of retirees and near-retirees to truly make a difference in retirement outcomes. "By combining education, personalized strategies, and the thoughtful use of technology, we can empower more Americans to retire with confidence."
The study serves as a clarion call to financial advisors, plan sponsors, and asset managers to pivot away from generic solutions towards more intentional, outcome-oriented offerings. By leveraging behavioral nudges, educational initiatives, and AI-driven personalization, it advocates for a systemic reshaping of retirement strategies aimed at achieving improved financial outcomes for individuals nearing or in retirement.
For those interested in further exploring the complete report, it is available through Allspring Global Investments’ dedicated resources on retirement planning. The insights gleaned from this study not only reflect the current state of retirement security in America but also offer a roadmap to navigate an increasingly turbulent financial landscape for future retirees.
The survey was conducted by Escalent between April 25 and May 16 of 2025, involving 1,515 adults who are primary or joint financial decision-makers in their households. The sample included retirees and near-retirees aged around 71 and 61 respectively, all of whom had a minimum of $200,000 in investable assets. Data weighting ensures the survey sample is representative of actual demographic proportions within the population.
One of the starkest revelations from the study is the waning sense of financial security among retirees and near-retirees. Only 60% of these individuals feel financially secure, with a notable decline in confidence particularly among women and those in the older near-retiree demographic. The data indicates a troubling trend where younger retirees, aged 65-69, experienced a significant drop of 15% in their confidence levels compared to the previous year, while older near-retirees of the same age group saw a decline of about 8%.
The study's findings suggest a pressing need for tailored retirement solutions rather than one-size-fits-all approaches, particularly when it comes to investment options. Among the near-retirees surveyed, a substantial 84% expressed a preference for more diversified investment strategies over typical target date funds. This indicates a growing awareness that individualized financial plans are crucial for meeting the varied needs of today's retirees.
Tax efficiency has emerged as another critical area of focus highlighted in the report. Shockingly, only 20% of retirees and near-retirees utilize efficient withdrawal strategies when it comes to managing their assets. The study underscores the importance of understanding asset location alongside asset allocation. Customized tax planning, it argues, could significantly improve overall retirement outcomes, helping individuals strategize their withdrawals in a way that maximizes the duration of their savings.
Additionally, the relevance of Social Security as a source of income in retirement remains paramount, yet many individuals lack adequate knowledge about it. In the survey, merely 10% of near-retirees were able to accurately answer questions related to Social Security, with most underestimating the benefits of delaying claims, which can increase monthly benefits by an impressive 80%. This knowledge gap presents another hurdle that must be addressed to ensure retirees can fully leverage their available resources.
As technology progresses, so does the role of artificial intelligence (AI) within the retirement advisory space. While the study revealed a pervasive distrust of AI—43% of those with advisors expressed skepticism, rising to 53% among those without—it also pointed out the potential benefits of AI in enhancing personalization in retirement planning. By focusing on education and equipping both advisors and workers with resources about tax minimization and income optimization, AI can play a transformative role in improving retirement outcomes. The expectation is that, over the next few years, AI will support advisor efforts by offering efficient solutions for asset allocation and withdrawal strategies. However, a prudent approach that combines technology with human expertise remains essential.
"Navigating retirement today requires more than just default solutions, particularly for mature participants," noted Nate Miles, head of Retirement at Allspring. He emphasized the necessity of understanding and addressing the diverse needs of retirees and near-retirees to truly make a difference in retirement outcomes. "By combining education, personalized strategies, and the thoughtful use of technology, we can empower more Americans to retire with confidence."
The study serves as a clarion call to financial advisors, plan sponsors, and asset managers to pivot away from generic solutions towards more intentional, outcome-oriented offerings. By leveraging behavioral nudges, educational initiatives, and AI-driven personalization, it advocates for a systemic reshaping of retirement strategies aimed at achieving improved financial outcomes for individuals nearing or in retirement.
For those interested in further exploring the complete report, it is available through Allspring Global Investments’ dedicated resources on retirement planning. The insights gleaned from this study not only reflect the current state of retirement security in America but also offer a roadmap to navigate an increasingly turbulent financial landscape for future retirees.
The survey was conducted by Escalent between April 25 and May 16 of 2025, involving 1,515 adults who are primary or joint financial decision-makers in their households. The sample included retirees and near-retirees aged around 71 and 61 respectively, all of whom had a minimum of $200,000 in investable assets. Data weighting ensures the survey sample is representative of actual demographic proportions within the population.
Topics Financial Services & Investing）
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