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Workers Overwhelmingly Call on Employers to Offer Lifetime Income in 401(k) Plans

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A new survey by Nuveen and TIAA Institute reveals overwhelming support for lifetime income options in 401(k) plans. 93% of workers consider it important for retirement plans to offer guaranteed monthly income options, while 87% believe employers share responsibility for retirement security. This marks a significant increase from 2021, when only 60% held this view. Around 90% of participants support fixed annuity inclusion in 401(k) plans and would consider using them. Currently, despite managing $6.8 trillion in assets and serving 79 million active participants, typical 401(k) plans lack guaranteed lifetime income conversion options. The survey highlights a growing demand for retirement income security and educational support to help workers effectively convert savings into sustainable monthly income during retirement.
Un nuovo sondaggio condotto da Nuveen e TIAA Institute rivela un forte sostegno per le opzioni di reddito a vita nei piani 401(k). Il 93% dei lavoratori ritiene importante che i piani pensionistici offrano opzioni di reddito mensile garantito, mentre l'87% pensa che i datori di lavoro condividano la responsabilità della sicurezza pensionistica. Questo rappresenta un aumento significativo rispetto al 2021, quando solo il 60% la pensava così. Circa il 90% dei partecipanti supporta l'inclusione di rendite fisse nei piani 401(k) e prenderebbe in considerazione il loro utilizzo. Attualmente, nonostante la gestione di 6,8 trilioni di dollari in asset e la presenza di 79 milioni di partecipanti attivi, i tradizionali piani 401(k) non offrono opzioni di conversione in reddito garantito a vita. Il sondaggio evidenzia una crescente domanda di sicurezza nel reddito pensionistico e di supporto educativo per aiutare i lavoratori a convertire efficacemente i risparmi in un reddito mensile sostenibile durante la pensione.
Una nueva encuesta realizada por Nuveen y TIAA Institute revela un apoyo abrumador a las opciones de ingresos vitalicios en los planes 401(k). El 93% de los trabajadores considera importante que los planes de jubilación ofrezcan opciones de ingresos mensuales garantizados, mientras que el 87% cree que los empleadores comparten la responsabilidad de la seguridad en la jubilación. Esto representa un aumento significativo desde 2021, cuando solo el 60% tenía esta opinión. Alrededor del 90% de los participantes apoyan la inclusión de anualidades fijas en los planes 401(k) y considerarían usarlas. Actualmente, a pesar de gestionar $6.8 billones en activos y servir a 79 millones de participantes activos, los planes típicos 401(k) carecen de opciones de conversión a ingresos garantizados de por vida. La encuesta destaca una creciente demanda de seguridad en los ingresos de jubilación y apoyo educativo para ayudar a los trabajadores a convertir eficazmente sus ahorros en ingresos mensuales sostenibles durante la jubilación.
Nuveen과 TIAA Institute가 실시한 새로운 설문조사에 따르면 401(k) 플랜에서 평생 소득 옵션에 대한 압도적인 지지가 나타났습니다. 근로자의 93%는 은퇴 계획에서 보장된 월 소득 옵션을 제공하는 것이 중요하다고 생각하며, 87%는 고용주도 은퇴 보장 책임을 공유한다고 믿고 있습니다. 이는 2021년의 60%에서 크게 증가한 수치입니다. 약 90%의 참가자가 401(k) 플랜에 고정 연금 포함을 지지하며 이를 사용할 의향이 있다고 응답했습니다. 현재 6.8조 달러의 자산을 관리하고 7,900만 명의 활성 참가자를 보유하고 있음에도 불구하고, 일반적인 401(k) 플랜에는 평생 보장 소득 전환 옵션이 부족합니다. 이 설문조사는 은퇴 소득 보장에 대한 수요 증가와 근로자가 저축을 효과적으로 지속 가능한 월 소득으로 전환할 수 있도록 돕는 교육 지원의 필요성을 강조합니다.
Une nouvelle enquête menée par Nuveen et l'Institut TIAA révèle un soutien massif aux options de revenu à vie dans les plans 401(k). 93 % des travailleurs considèrent qu'il est important que les plans de retraite offrent des options de revenu mensuel garanti, tandis que 87 % estiment que les employeurs partagent la responsabilité de la sécurité de la retraite. Cela représente une augmentation significative par rapport à 2021, où seulement 60 % avaient cette opinion. Environ 90 % des participants soutiennent l'inclusion d'annuités fixes dans les plans 401(k) et envisageraient de les utiliser. Actuellement, malgré la gestion de 6,8 billions de dollars d'actifs et le service de 79 millions de participants actifs, les plans 401(k) typiques ne proposent pas d'options de conversion en revenu garanti à vie. L'enquête met en lumière une demande croissante de sécurité des revenus de retraite et un besoin de soutien éducatif pour aider les travailleurs à convertir efficacement leurs économies en un revenu mensuel durable pendant la retraite.
Eine neue Umfrage von Nuveen und dem TIAA Institute zeigt eine überwältigende Unterstützung für lebenslange Einkommensoptionen in 401(k)-Plänen. 93 % der Arbeitnehmer halten es für wichtig, dass Rentenpläne garantierte monatliche Einkommensoptionen anbieten, während 87 % der Meinung sind, dass Arbeitgeber eine Mitverantwortung für die Rentensicherheit tragen. Dies stellt einen deutlichen Anstieg gegenüber 2021 dar, als nur 60 % dieser Ansicht waren. Rund 90 % der Teilnehmer unterstützen die Aufnahme von festen Renten in 401(k)-Pläne und würden deren Nutzung in Betracht ziehen. Trotz der Verwaltung von 6,8 Billionen US-Dollar an Vermögenswerten und der Betreuung von 79 Millionen aktiven Teilnehmern fehlen typischen 401(k)-Plänen derzeit Optionen zur Umwandlung in garantierte lebenslange Einkünfte. Die Umfrage unterstreicht die wachsende Nachfrage nach Sicherheit im Renteneinkommen und nach Bildungsangeboten, die Arbeitnehmer dabei unterstützen, Ersparnisse effektiv in nachhaltige monatliche Einkünfte im Ruhestand umzuwandeln.
Positive
  • Strong market demand with 93% of workers wanting guaranteed monthly retirement income options
  • Significant increase in worker interest from 60% in 2021 to 87% in 2025
  • 90% of participants show interest in fixed annuity products
  • Large addressable market with 79 million active participants and $6.8 trillion in assets
Negative
  • Current 401(k) plans typically lack guaranteed lifetime income conversion options
  • Knowledge gap exists among participants in converting savings to sustainable monthly income
  • Educational challenges in helping workers develop effective withdrawal strategies

Nuveen and TIAA Institute survey shows vast majority of workers believe retirement income security is a shared responsibility

NEW YORK, May 19, 2025 /PRNewswire/ -- Almost all workers saving in 401(k) plans (93%) say it is important for their retirement plans to provide options for converting savings into guaranteed monthly retirement income that never runs out, while 87% think employers have a responsibility to help employees achieve retirement income security.

This is according to a new survey of over two thousand 401(k) participants by Nuveen, the investment manager of TIAA, and the TIAA Institute.

These findings represent a dramatic increase in interest in guaranteed lifetime income. When asked in 2021, less than six in 10 workers said that their employers had a responsibility to provide access to lifetime income in retirement.

In fact, the survey released today found that about 90% of 401(k) participants:

  • Think it would be valuable for 401(k) plans to include a fixed annuity
  • Would be interested in saving with a fixed annuity if it was included in their plan
  • Would consider using a fixed annuity to provide steady monthly income throughout retirement
  • Agree it would be valuable for their target-date investments to include a fixed annuity component

The Critical Gap
Today, the typical 401(k) plan does not offer a way to convert savings into consistent monthly income that is guaranteed for a retiree's lifetime - despite 401(k) plans being the dominant form of retirement savings in the private sector, with 79 million active participants and $6.8 trillion in assets.i

Innovation in Action
In response, innovative 401(k) plan sponsors are exploring how to offer guaranteed retirement income by adding fixed annuities to a retirement plan.

"Incorporating fixed annuities into 401(k) plans is a simple, effective and low-cost way to fill the retirement income design gap. With tools like target-date investments that include a fixed annuity component, sponsors can simplify savings and investing, as well as the ability to convert retirement savings into retirement income," said Brendan McCarthy, head of Retirement Investing at Nuveen. "A well-designed decumulation strategy isn't just a nice-to-have, it is essential to realizing the full value of a 401(k) plan—and workers agree."

The Need for Education
"While retirees are increasingly interested in lifetime income solutions, many struggle to develop effective withdrawal strategies," said Surya Kolluri, head of the TIAA Institute. "The challenge lies in converting retirement savings into sustainable monthly income—a process that remains unclear to most participants. This knowledge gap makes education and thoughtful plan design more crucial than ever to prevent potentially costly financial missteps at and during retirement."

Plan sponsors can bridge this gap and boost employees' retirement confidence—especially for those nearing retirement—by providing focused and regular education programs about retirement benefits and how to convert savings into lifetime income.

"Today's workers see guaranteed retirement income not just as a personal goal - but as a shared mission with their employer," said McCarthy. "By acknowledging that they can play a critical role in offering financial security after retirement, plan sponsors can establish trust and goodwill among employees—potentially for a long time."

For more information and to see the full results of the survey, go to Nuveen.com/participant-perspectives.

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 $1.3 trillion in assets under management as of 31 Mar 2025 and operations in 32 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. For more information, please visit www.nuveen.com.

About TIAA Institute 
The TIAA Institute is a think-tank within TIAA, conducting cutting-edge research in the areas of financial literacy and longevity literacy, lifetime income, retirement plan design and behavioral finance in the context of retirement. The Institute provides consulting services for higher education and the broader nonprofit sector. For more information, please visit TIAAinstitute.org.

About TIAA  
TIAA is a leading providerii of secure retirements and outcome-focused investment solutions to millions of people and thousands of institutions. It shared $5 billion with participants in 2023, on top of the stated guarantees, and has $1.4 trillion in assets under management (as of 3/31/2025).iii For more information, please visit TIAA.org.

Press Contact:
Elizabeth Anderson
Media@tiaa.org

i EBSA, 2024.
ii As of June 3, 2024. Based on data in PLANSPONSOR's 2024 DC Recordkeeping Survey, #1 by total 403(b) assets and #1 by 403(b) ERISA plans.
iii As of March 31, 2025, assets under management across Nuveen Investments affiliates and TIAA investment management teams are $1,373 billion.

This material is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy, sell or hold a security or investment strategy, and is not provided in a fiduciary capacity. The information provided does not take into account the specific objectives or circumstances of any particular investor, or suggest any specific course of action. Financial professionals should independently evaluate the risks associated with products or services and exercise independent judgment with respect to their clients.

Investing involves risk; principal loss is possible.

Any guarantees are backed by the claims-paying ability of the issuing company.  Converting some or all of your savings to income benefits (referred to as "annuitization") is a permanent decision. Once income benefit payments have begun, you are unable to change to another option.

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SOURCE Nuveen

FAQ

What percentage of 401(k) participants want guaranteed monthly retirement income options in 2025?

93% of 401(k) participants say it's important for their retirement plans to provide options for converting savings into guaranteed monthly retirement income that never runs out.

How many active participants and assets are currently in 401(k) plans?

401(k) plans currently have 79 million active participants and manage $6.8 trillion in assets in the private sector.

What percentage of workers believe employers are responsible for retirement income security?

87% of workers believe employers have a responsibility to help employees achieve retirement income security, up from less than 60% in 2021.

What percentage of 401(k) participants are interested in fixed annuities in their plans?

About 90% of 401(k) participants would be interested in saving with a fixed annuity if it was included in their plan and would consider using it for steady monthly income throughout retirement.

What is the main challenge for retirees regarding lifetime income solutions?

The main challenge is converting retirement savings into sustainable monthly income, a process that remains unclear to most participants, creating a knowledge gap that requires education and thoughtful plan design.
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