The adage “don’t borrow trouble” advises us against distressing over problems yet to occur. But we don’t think it should apply to retirement planning. In fact, digging into what concerns DC plan participants now may help them avoid retirement pitfalls down the road.
For example, inflation—rising costs eroding savings and purchasing power—tops the list of participants’ worries, according to AB’s 2025 Inside the Minds survey (Display). Although inflation has been easing, historically high prices are still forcing many participants to prioritize today’s cost of living over tomorrow’s retirement.
The wariness about inflation ties into the second-highest participant concern: Have I saved enough? Another is knowing how much savings to withdraw without running out, along with market volatility and investing confidence.
Only 37% of participants in our survey are very confident or confident they’ll live a financially comfortable retirement, underscoring that participants need—and want—help. That’s an open door for sponsors to address future problems and current concerns with a range of tools, from financial education and wellness initiatives to custom participant engagement and guaranteed income solutions.
Communications—especially when direct and motivating—can help participants hone in on their targets for current savings and retirement income. Participation and investment levels have improved across plans that consistently address the benefits—and misconceptions—of guaranteed income strategies.
Engagement on a personal level is critical, in our view, since guaranteed income solutions are not one-size-fits-all. AI could be a game changer in this area, especially with personalized investment advice and customer service across a wide plan population. We think sponsors also have the ability to help mitigate participant concerns about saving enough through investment enhancements, including adding the return potential of private markets to target-date glide paths.
DC plan participants are the frontline offense in ensuring a comfortable retirement. But sponsors play a big role too, especially by helping cover the gaps stressing out most participants.
The views expressed herein do not constitute research, investment advice or trade recommendations, do not necessarily represent the views of all AB portfolio-management teams and are subject to change over time.
“Target date” in a fund’s name refers to the approximate year when a plan participant expects to retire and begin withdrawing from his or her account. Target-date funds gradually adjust their asset allocation, lowering risk as a participant nears retirement. Investments in target-date funds are not guaranteed against loss of principal at any time, and account values can be more or less than the original amount invested—including at the time of the fund’s target date. Also, investing in target-date funds does not guarantee sufficient income in retirement.
AB’s web-based plan-participant survey is based on a national sample of more than 1,200 employees. Of these, 1,000 were full-time workers participating in a workplace retirement savings plan at their current employer and 200 were retirees who had previously worked full time and participated in a workplace savings plan.
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