Participant engagement

Across the generations: Participant views on retirement income

February 8, 2024

Key takeaways

Plan participants across all generations want an income strategy to turn their savings into a sustainable retirement income stream.

Participants said they would need employer guidance to determine which retirement income options would best suit them.

Participants are receptive to the concept of being auto-enrolled into a retirement income option with the ability to opt out.

More than two-thirds of plan participants across all generations fear running out of money in retirement, according to Invesco's 2022 defined contribution (DC) research study, "Show me the income."

Participants desire both reliable and flexible income streams, including a guaranteed lifetime income option, monthly income withdrawal option, or an option to split among both.

However, across the board, participants said they would need assistance picking the right in-plan retirement income solution(s) to help them turn their DC plan savings into sustainable income in retirement. Millennials and Gen X especially needed – and wanted – employer guidance.

Plan sponsors can help participants help themselves by offering them the right tools, education, and retirement income solutions. Since participants have become familiar and comfortable with auto-enrollment, sponsors could offer this feature as part of a guaranteed or non-guaranteed retirement income solution with the ability to opt out.

Learn more about how plan sponsors can help every generation create a more secure retirement.