Three trends redefining participant retirement readiness in 2025

What plan sponsors and financial professionals need to know and how to respond 

Retirement readiness is being redefined. It is no longer just about what participants know. It is about whether they feel confident enough to act on it.

New findings from the TruStage® 2025 Retirement Participant Education Survey reveal a clear shift. Knowledge alone does not move participants forward. Confidence, personalization and accessibility are now the drivers of meaningful engagement and better outcomes.

For plan sponsors and financial professionals, this signals an important evolution. The most effective retirement education strategies are no longer built around information delivery and basic financial literacy. They are built around action and helping participants feel prepared and confident about saving for retirement.

Why this matters now

Economic pressure continues to shape how participants think about their financial future.

Many are navigating rising costs, increased reliance on credit and competing financial priorities. As a result, long-term retirement planning often feels uncertain or out of reach.

Expectations are changing. Participants want guidance that feels relevant, accessible and actionable, not just educational. They want support that clearly connects financial literacy concepts to their personal retirement readiness.

Plans that respond to these realities are better positioned to improve participant engagement in retirement plans, support consistent saving for retirement and build lasting retirement confidence.

Trend 1: The confidence gap is now the biggest barrier to readiness

Insight

Despite increased access to participant retirement education, uncertainty remains high:

• Only 28% of workers know how much they will need to retire comfortably
• Just 26% feel confident they are saving enough
• 73% take action after receiving one-on-one guidance
• 63% rate one-on-one sessions as very or extremely helpful

The data is clear. Confidence, not awareness, drives action.

What this means for plan sponsors and financial professionals

Many participants are not stuck because they lack information. They are stuck because they lack clarity on how their personal financial data translates into retirement readiness and effective retirement savings.

Retirement education that stops at general knowledge and financial literacy leaves participants uncertain and hesitant. Plans that help participants understand their financial situations and define a clear path forward are far more likely to drive engagement and behavior change.

For plan sponsors and financial professionals, closing the confidence gap is a direct opportunity to improve retirement readiness.

Plans that respond to these realities are better positioned to improve participant engagement in retirement plans and build lasting retirement confidence.

What you can do

• Incorporate confidence indicators alongside participation and deferral rates
• Deliver guidance at key decision points, such as enrollment, pay increases, job changes and pre-retirement
• Provide tools and support that translate data into clear personalized next steps for retirement planning and savings for retirement

Trend 2: Personalization is what turns engagement into action

Insight

Participants are more likely to engage when education reflects their personal situation:

• 78% of participants aware of RetireOnTarget® have used it
• 81% say it helps them navigate retirement planning
• 82% of financial wellness program users report higher confidence

When participants receive tailored guidance, they take meaningful action such as increasing contributions, adjusting investments or updating beneficiaries.

What this means for plan sponsors and financial professionals

Generic education may inform, but it rarely motivates.

Participants expect experiences that reflect their goals, life stage and financial reality. Personalization simplifies decisions and builds the confidence needed to act.

For plan sponsors, this leads to stronger engagement and improved outcomes. For financial professionals, it supports more meaningful conversations and reinforces their value.

What you can do

• Shift from broad campaigns to personalized participant journeys
• Use tools that deliver individualized projections and recommendations
• Combine digital experiences with human interaction to reinforce understanding and accountability

Trend 3: Multi-format education is now expected

Insight

Participants want flexibility in how they learn and engage:

• It is no surprise that digital formats are preferred — online tools (47%), videos (46%), email (44%) — with 1:1 consultations (43%) being a fast follower
• Younger participants are more likely to favor videos, while older participants are more likely to favor newsletters
• Participants using digital tools report higher confidence across readiness measures

There is no single preferred format. Having the choice between formats is what drives engagement and supports ongoing financial literacy.

What this means for plan sponsors and financial professionals

A one-size-fits-all education strategy no longer works.

Participants engage differently based on preferences, life stages and timing. Plans that offer multiple ways to learn reduce barriers, improve comprehension and better support retirement planning and saving for retirement.

What you can do

• Offer multiple ways to engage, including interactive tools, short videos, email and live consultations
• Align formats to participant preferences while maintaining consistent messaging
• Prioritize interactive experiences that help participants visualize progress and outcomes

Turning insight into impact

The data points to a clear shift in retirement plan participant expectations.

Participants don't necessarily need more information. They need clarity and relevance from the information they are recieving in order to build that confidence in their financial futures.

Plans that deliver personalized, life-stage guidance in flexible formats are better positioned to:

• Increase participant engagement
• Improve retirement confidence
• Drive stronger retirement readiness

TruStage supports this shift through an integrated approach that combines researchbacked insights, digital tools and one-on-one education. The goal is simple. Make retirement planning easier to understand and easier to act on.

Ready to turn insight into action?

Build participant confidence backed by data.

Download the 2025 Retirement Participant Education Survey eBook to see how personalized guidance and multi-format education are reshaping retirement readiness.