Allspring Global Investments released its 2025 retirement study, which reveals that fewer retirees and near-retirees feel financially secure compared with last year, pointing to a growing appetite for personalized investment, Social Security and tax solutions. According to the report, only six in 10 retirees and near-retirees feel financially secure, with women, older near-retirees and younger retirees reporting the steepest drops in confidence.
More diversified needs are calling for tailored options. The report found that 84% of near-retirees prefer other investment options over target date funds, pointing to the fact that a one-size-fits-all approach may not address the disparate needs of retirees and near-retirees.
“Navigating retirement today requires more than just default solutions, particularly for mature participants,” says Nate Miles, head of retirement at Allspring Global Investments. “Our research shows that understanding the diverse needs of retirees and near-retirees—and designing plans to meet those needs—can make a real difference in outcomes. By combining education, personalized strategies and the thoughtful use of technology, we can help more Americans retire with confidence.”
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The report highlights that tax efficiency is critical, with only one in five retirees and near-retirees reporting that they use tax-efficient withdrawal strategies. Additionally, the study shows that asset location is as important as asset allocation, and customized tax planning can significantly improve retirement outcomes.
“Going into retirement without a tax-aware withdrawal strategy is like inviting the IRS to your retirement party and letting them drink all of the expensive champagne,” says Holly Swan, Allspring’s head of Wealth Solutions. “Tax-smart withdrawals ensure your money lasts longer, because the only thing worse than running out of money is knowing that you lost it to taxes.”
Finally, the report found that while Social Security remains the top retirement income source, many lack Social Security literacy. Only one in 10 near-retirees were able to answer the survey’s Social Security questions accurately. “Most underestimate the value of delaying claiming, which can boost monthly benefits by nearly 80% and provide maximal, lifelong, inflation-protected income,” researchers wrote.
Overall, they urge plan sponsors, advisors, consultants, recordkeepers and asset managers to move beyond default solutions and embrace intentional, outcome-oriented offerings. Behavioral nudges, education and AI-powered personalization can help retirees and near-retirees achieve better financial outcomes—by design, not by default.
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