2025 DC Retirement at a Glance

1. WHO ARE YOU GOING TO TURN TO? — The Longevity Preparedness Index (LPI) measures the readiness of Americans to approach old age. The latest LPI for 2025 was just 60 out of 100, showing that most adults are underprepared. The category where they are least prepared is in “Care” as just 43% of adults have taken steps to ensure they will have access to a long-term caregiver if needed. (Source: MIT/John Hancock)

2. AGAINST BETTER JUDGMENT — While 70% of non-retirees know that waiting until 70 would maximize their Social Security payments, only 10% actually plan to wait that long. Wanting access to the money sooner and concerns about the solvency of Social Security are the two most cited reasons for not waiting. (Source: Plan Sponsor Council of America)

3. GENERATIONAL DISCONNECT — A report from Cerulli Associates found that while 49% of Baby Boomers expect Social Security to be their primary source of retirement income, that percentage declines sharply to just 16% for Millennials. Among Gen Z Americans, only 5% expect Social Security to be their primary source of income.* (Source: Barrons)

4. REALITY SETS IN WITH AGE — The percentage of working middle-class Americans who expect to retire before age 65 declines as they get older. While 47% of those in their 20s expect to retire before 65, that percentage declines to 35% for those in their 30s, 25% for those in their 40s and just 26% for those in their 50s. (Source: Transamerica)

5. TOO MUCH? — Total pension fund assets for Fortune 1000 companies totaled $1.21 trillion through the end of Q3, versus projected benefit obligations of $1.18 trillion. With an aggregate funded ratio of 102.9%, US corporate pensions are more fully funded than at any other time in the last decade. (Source: Willis Towers Watson)

6. AM I STILL IN THE WILL? — Thirty-one percent of US adults plan to leave an inheritance or gift to a charity, which is up from 26% a year ago. On the other hand, just 20% of Americans expect to receive an inheritance, which is down from 25% last year. Of those expecting to receive an inheritance, 57% say it is critical to their long-term financial security. (Source: Northwestern Mutual)

7. NO COLA FOR THE RICH — According to an analysis from the Committee for a Responsible Federal Budget, capping the Social Security cost of living adjustment (COLA) to the 75th percentile of benefits would save $115 billion over a ten-year period and close about 10% of Social Security’s 75-year funding gap. (Source: Financial Advisor)

8. PUTTING OFF THE SPOUSE AND KIDS — Traditionally, getting married and having children are two key life events that prompt people to buy life insurance. However, younger people are now postponing or opting out of these milestones. Among people under 40, 63% have no immediate plans to marry, and 84% have no immediate plans to have kids. As a result, 32% say life insurance doesn’t fit with their current stage of life. (Source: Capgemini)

9. RETIREMENT CONFIDENCE VS PLANNING — Eighty-seven percent of mass affluent people (those with $100K+ in investable assets) in the US, Japan, Brazil and Mexico believe they have the means to cover expenses in retirement. However, only 41% have sought help from a financial advisor to plan for their retirement, and just half have factored in the impact of inflation on how costs will change in retirement. (Source: Financial Advisor)

QUESTION: “Forgotten” 401(k)s are accounts held in retirement plans that participants left behind with a previous employer. These accounts are typically consolidated later but often incur higher-than-necessary fees and are incorrectly allocated to the participant’s goals in the meantime. Out of the $9.3 trillion held in 401(k) accounts nationwide, what percentage are in ‘forgotten’ 401(k)s?

*According to Statista, Generation Z was born between 1997 and 2012, Millennials were born between 1981 and 1996 and Baby Boomers were born between 1946 and 1964.

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