Gen X workers are the least confident about retirement readiness, even as younger savers express optimism and employers grow more skeptical, according to BlackRock’s latest Read on Retirement report.
According to BlackRock's 10th annual report, published Monday, just 54% of Gen X respondents say they are on track to meet their retirement goals – the lowest of any cohort. Meanwhile, three-quarters (76%) of Gen Z feel on pace despite nearly one-half saying student debt is crowding out their ability to make contributions.
The survey also shows fresh evidence of the persistent gender gap in retirement, with 84% of men feeling secure about their savings versus 73% of women.
Overall, nearly two-thirds of workplace savers, or 64%, feel on track. But only 38% of plan sponsors say the majority of their employees are on track — a record low that underscores a widening perception divide between employees and employers.
While saver confidence has climbed 23% over the past decade, BlackRock's report found short‑term sentiment has dipped alongside market volatility, and median savings rates have slid to 10% in 2025 from 12% in 2022.
“A decade of insights on retirement readiness data reveal a striking paradox: while saver optimism about retirement is rising, employer confidence and actual savings contributions are falling – highlighting a disconnect between how prepared people feel and how prepared they likely are,” Jaime Magyera, head of BlackRock’s retirement business, said on Monday.
Guaranteed income stands out as a prominent pressure point. Just 27% of today’s retirees feel very financially prepared for the rest of retirement, down sharply from 43% in 2020. Among workplace savers, 86% say they want a guaranteed income option and 74% would save more if it were available; 91% of retirees believe employers should include it in-plan.
For the first time, every surveyed employer said they feel responsible for helping participants generate income in retirement. BlackRock said LifePath Paycheck, its target-date solution with an option for lifetime income payable by insurers, is now available to plans touching the lives of more than 350,000 US workers, with more than $24 billion in assets under management placed in the strategy as of June.
Plan sponsors are also weighing alternative assets, according to the survey. Nearly one in four say they are considering adding alternatives, and BlackRock’s research estimates that thoughtfully structured allocations to private equity and private credit inside target-date strategies could yield roughly 15% more in a participant’s 401(k) over 40 years. According to Reuters, BlackRock has announced plans to infuse private assets into key target-date strategies its offers by 2026.
The firm acknowledges ongoing questions around liquidity, fees and transparency, but argues that private markets can improve diversification, cash flow stability and inflation protection when integrated prudently.
Separately, the asset manager continues to emphasize its scale in retirement. BlackRock describes itself as the largest defined contribution investment‑only firm with approximately $1.7 trillion in DC assets under management, counting its LifePath franchise. More than half of the company’s total assets are tied to retirement products, according to its most recent earnings figures.
For advisors, the survey suggests client conversations should focus first on closing demographic gaps – especially Gen X and women nearing retirement – and stress-testing income needs. Growing demand for in‑plan annuity features and clarity around how private markets may fit in diversified default options could shape plan design discussions with sponsors.
Finally, interest in professionally managed solutions remains strong: one-half of savers prefer to have investments managed for them, up from 36% in 2017. Three‑quarters say automatic, age‑based reallocation akin to a target‑date fund would help, and a large majority of current retirees say they wish they had access to a similar solution earlier.
"While much progress has been made to help educate and simplify saving for retirement, savers and employers alike are seeking more solutions ... to help people build confidence and afford longer retirements," Magyera said.
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