Retirement security is a growing concern for many Americans, particularly as Social Security faces an uncertain future and the cost of living continues to climb. Amidst these challenges, a significant portion of both employees and employers now acknowledge that confidence in retirement planning is delicate and fragmented.
This insight is a central finding from the tenth edition of BlackRock's 'Read on Retirement' survey. The investment management giant gathered perspectives from 1,300 employees actively participating in workplace retirement schemes, 300 retirees, and 459 plan sponsors. Conducted by Escalent between February and May 2025, the survey included employees with at least $5,000 in their current accounts. The demographic breakdown of employee respondents showed Gen X at 36%, millennials at 32%, baby boomers at 16%, and Gen Z also at 16%. Retirees surveyed had been out of the workforce for a minimum of ten years, with approximately half benefiting from a defined benefit or pension plan.
The survey indicates a paradoxical trend: while 64% of the current workforce express optimism about their retirement, only 38% of employers believe that at least 60% of their staff are on track for a secure retirement – a record low. Despite this, younger generations, particularly Gen Z, exhibit greater confidence in their retirement prospects compared to millennials a decade ago. Three-quarters of Gen Z respondents are optimistic today, a notable increase from the 59% of millennials surveyed in 2016. Similarly, millennials in their prime earning years (around age 35) show heightened confidence (70%) compared to Gen X respondents at the same age in 2016 (43%). However, confidence among older workers, specifically Gen Xers around age 45, has remained stagnant at 54% over the past decade. Furthermore, a persistent gender gap in retirement confidence highlights that women face unique challenges, with 56% feeling prepared compared to 72% of men. Employers are responding to these needs, with 100% acknowledging responsibility for helping employees manage their income for retirement. They increasingly favor actively managed target-date funds as a strategy to potentially boost returns and mitigate market volatility.
The journey towards a financially secure retirement is complex and multifaceted, influenced by economic shifts, policy changes, and individual circumstances. While progress has been made in fostering confidence among younger savers through enhanced retirement systems, it is clear that ongoing efforts are essential to bridge the gaps in preparedness, especially for those nearing retirement and for women. This collective understanding and commitment from both individuals and institutions can pave the way for a more equitable and stable financial future for all.