A majority of US workers participating in 401(k) plans are navigating retirement planning without the support of a financial advisor, and many are instead relying on recordkeepers as their main source of guidance, according to new findings from Cerulli Associates.
The U.S. Retirement End-Investor 2025 report reveals that 63% of active 401(k) participants – most of whom fall into the mass-affluent category – do not currently work with an advisor. Among those without an advisor, 52% consider their retirement account provider to be their primary source for retirement and financial advice.
“There is an opportunity for recordkeepers to establish themselves as a trusted advisor throughout the accumulation phase in order to retain and win assets,” Elizabeth Chiffer, research analyst at Cerulli, said in a statement announcing the research.
Among participants with $250,000 to $2 million in investable assets, the desire for guidance is especially pronounced. Thirty-one percent of unadvised participants say they plan to hire an advisor as they near retirement, and an additional 19% are undecided. Only 12% have no plans to work with one.
Cerulli’s research also highlights several critical decision points where investors are likely to seek help, including setting retirement goals, deciding whether to roll over assets into an IRA, and navigating tax implications during the decumulation phase. The report notes that fewer than three in ten active 401(k) participants feel very confident making withdrawal and tax decisions without advisor support.
For advisors – particularly RIAs – the data points to an underserved client base, especially among the mass-affluent. Forty percent of 401(k) participants with $500,000 to $2 million in investable assets, and 38% of those with $250,000 to $500,000, do not have an advisor.
“There are novel solutions with less burdensome investment that recordkeepers, advisors, and plan sponsors should consider,” Chiffer said, pointing to tactics such as embedding financial planning tools within the plan experience and integrating retirement goal-setting into annual benefits enrollment.
The report also finds that 401(k) participants who do work with advisors are more confident in their retirement outlook. Thirty-eight percent of advised participants say they are very confident in their ability to maintain their standard of living in retirement – a marked contrast to unadvised peers.
Meanwhile, across all retired 401(k) participants, Social Security remains the dominant source of income, cited by 58%. Those with over $2 million in investable assets are more likely to self-insure their sunset years with personal retirement accounts, which account for 27% of primary retirement income sources, according to Cerulli.
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