Retirement plan participants are not shying away from guidance—they are shying away from solutions that strip away access, control, or the ability to leave a legacy. That is the central takeaway from the 2026 Retirement Study by the Retirement Research Center at DCIIA, conducted on behalf of Allspring Global Investments.
The survey, which polled 1,510 U.S. adults who are primary or joint household financial decision-makers, included 752 near-retirees (average age 62) and 758 retirees (average age 71), all with at least $200,000 in household investable assets. The findings suggest that plan sponsors and advisors who push one-size-fits-all automation may be missing what participants actually value.
Trust doesn't keep money in the plan
While 70% of near-retirees say they trust their employer's plan design, 56% still expect to move their savings to an IRA at retirement. According to DCIIA and Manifest's DC Data Dashboard, which tracks data through March 2026, defined contribution rollovers to IRAs outpace roll-ins by roughly nine to one. The reasons participants would stay in-plan, the study says, are lower costs, retirement-focused investment options, and straightforward withdrawal flexibility.
Income with a legacy twist
The study's annuity findings are striking. When presented with a hypothetical $500,000 savings scenario, 66% of respondents expressed interest in an annuity that would pass any remaining balance to heirs. Only 34% were interested in a conventional annuity with no such provision. That nearly doubles interest when a legacy component is included. Overall, 70% of participants want both income protection and control over assets; just 18% prioritize income alone, and 12% prioritize access above all else.
Retail annuity sales hit a record $464.1 billion in 2025, up 7% from 2024, according to LIMRA's Final U.S. Retail Annuity Sales data published March 23, 2026. The Allspring study suggests the challenge is not the product type but how it is framed—and whether it preserves a sense of ownership. Advisors may need to revisit their clients' fears about spending and design income strategies that address both.
Target date funds lose their appeal in retirement
Target date funds (TDFs) are a mainstay of accumulation, but their usage drops sharply in distribution. Cerulli Associates data cited in the study show that 35% of 401(k) assets were in TDFs as of December 31, 2023, while only 2% of IRA assets were as of June 30, 2024. The survey mirrors this: 55% of near-retirees hold some retirement assets in a TDF, versus just 17% of retirees. Reasons include a desire for more control, advisor involvement, and performance concerns. TDFs handle asset allocation well, but retirement needs extend to withdrawals, taxes, and income elections—areas where advisors are shifting focus to spending strategies.
Advisor use rises, but so does rollover behavior
Advisor engagement climbs with age: 27% of early-career workers use an advisor, rising to 48% at mid-career, 68% in later career, and 73% after retirement. Yet near-retirees who work with an advisor are actually more likely to roll assets out of an employer plan at separation. The study also notes that 27% of retirees retired after age 65, and 16% returned to work after retiring. Plan sponsors and advisors should focus on key decision points rather than steering everyone to the same outcome.
The study introduces three investor personas with similar balances but different priorities. The largest group (45%) prioritizes safety, predictability, and access. A second group (35%) focuses on real return and is confident in equities. The remaining 20% are tax-efficiency oriented, with 92% saying they would act if tax savings were sufficient. These personas underscore the need for personalized guidance, especially as Social Security COLA forecasts and longer retirements complicate planning.
