New Allspring Retirement Study Explores Challenges with Control and Decision-Making

Understanding the New Allspring Retirement Study

Allspring Global Investments™, a prominent asset management firm with over $642 billion in assets under advisement, has recently published its 2026 retirement study, titled "The Retirement Decisions Defaults Can't Address." This comprehensive survey explores the complex relationship between retirement plan participants' need for guidance in decision-making and their strong desire to maintain control over their investments. Conducted in collaboration with the Retirement Research Center at DCIIA, the study encompasses insights from over 1,500 U.S. adults, revealing significant patterns among retirement investors.

Key Findings

One of the most striking findings from the study indicates that while participants generally trust employers to design effective retirement plans, there is a paradox at play. More than half of respondents expressed an intention to transfer their savings at retirement, particularly if they are working with an advisor. This suggests that retirement plan sponsors must prioritize low costs, provide adequate guidance, and ensure a range of investment options focused on retirement income to retain participants effectively.

Moreover, almost one-third of respondents indicated a preference for guaranteed retirement income. However, a significant 70% of participants stressed that access and control are equally important as the notion of income protection. This balance between guaranteed income and maintaining control over their finances presents a significant challenge for sponsors considering in-plan annuity options, necessitating a delicate handling of competing priorities and providing multiple choices to participants.

Interestingly, the study also delves into the behavior of participants concerning target date funds (TDFs). More than half of near-retirees reported holding some portion of their assets in TDFs; however, this usage sharply declines among retirees. This observation implies that while TDFs serve as a useful allocation tool for certain accumulators, they may not satisfy the nuanced needs of individuals who are approaching or already in retirement.

The study notes a significant variance in the use of financial advisors based on career stages. Only 27% of individuals in their early career sought advice, while 73% of retirees utilized professional guidance. This trend indicates that sponsors need to be strategic in deciding whether they aim to retain participants throughout retirement or facilitate their transition out of the plan.

Additionally, the research identifies distinct personas among participants with similar resources, highlighting diverse definitions of success in retirement planning. About 45% of participants prioritize safety, predictability, and accessibility; 35% focus on achieving real returns; and 20% lean towards tax efficiency. These differing definitions underscore the necessity for sponsors to present guidance in a manner that integrates participants' varied perspectives on retirement success.

Insights from Allspring Leadership

Nate Miles, the head of Retirement at Allspring Global Investments, emphasized the personal nature of retirement decisions, especially as individuals near retirement age. "Our research indicates that participants do not conform to a singular definition of success. They are seeking guidance but value the flexibility to define their retirement trajectory," Miles stated. This growing complexity in retirement decision-making necessitates that firms adapt their strategies to assist individuals in navigating these intricate choices.

For firms looking to enhance their effectiveness, the key lies in understanding and addressing what matters most to each participant, allowing for personalized planning that can cater to the diverse needs present in the retirement landscape.

Conclusion

In an era where retirement planning has become increasingly intricate, understanding the balance between effective guidance and the desire for control remains paramount. Allspring Global Investments' 2026 Retirement Study provides vital insights that can help retirement plan sponsors and financial advisors tailor their approaches to meet the evolving needs of their participants. This research ultimately serves to foster a more informed and responsive retirement ecosystem.

To explore the full report further, please visit the 2026 Retirement Study | Allspring Global Investments.