GGA Retirement

Retirement readiness is improving, but there’s a bigger story behind the numbers

Fidelity reports that average retirement account balances have reached a record $138,000, driven by strong markets and consistent savings habits. Employees contribute an average of 9.5%, with employers adding 4.7%. Vanguard also notes participation at an all-time high of 85%, a promising indicator of progress.

A new report by PGIM shows how powerful employer signaling can be. Among current employees, 62% say they’re highly likely to stay in the plan if they believe that’s their employer’s preference, compared to just 34% if they think their employer wants them to exit at retirement.

This raises an important question:

Does hiring an independent fiduciary signal that an employer wants participants to stay in the plan, and is truly committed to supporting their retirement journey?

There are signs employers are leaning that way.

Goldman’s January report on DC trends shows OCIO/Fiduciary Services AUM more than doubling, ($232B in 2018 to $581B by the end of 2024). This growth correlates with rising pre-retiree readiness. Still, challenges remain, particularly for retirees facing significant inflation. Hospital Services and Medical Care inflation: (272% and 123% since 2000).

If employees don’t expect to remain in a plan after retirement, perhaps because they perceive it as lacking key features, they may contribute only “up to the match.”

When professional management is available, however, they can gain greater confidence not only in their contributions, but in their overall financial wellness.

If your company is relying on an off-the-shelf retirement plan, now is the time to consider bringing in an independent fiduciary advisor.

💡 A strong retirement plan is more than a benefit; it’s a trust signal.

When employees feel financially secure, they bring more focus, less stress, and higher engagement to work.

HR and Finance teams have a key question to ask:

Does our plan create confidence, or confusion?

✅ Risk-managed options
✅ True diversification
✅ Transparent fees
✅ Fiduciary oversight

Small upgrades can deliver big peace of mind.

Because supporting your people’s future is one of the smartest investments you can make today.