401(k) Savers Seek Retirement Plans, Guaranteed Income

Pre-retirees in 401(k) plans are seeking personalized retirement-income plans, flexible withdrawals and guaranteed payments, according to a Cerulli Associates report released this month.

About 40% of participants want “a personalized, detailed, and actionable plan to follow in retirement.” Another 39% want guaranteed monthly payments that continue after their savings have been depleted.

Flexibility is also a stated preference. Some 46% of participants want to withdraw money at any time, while 31% want to change their investments. The report noted that these choices can conflict with guaranteed lifetime income, which may limit access to savings or carry higher costs.

“Most pre-retirees are uncomfortable making key retirement income decisions without an advisor’s help,” Chris Bailey, a director in Cerulli’s Retirement practice, wrote in a statement. “As much as they want guaranteed income in retirement, pre-retirees also want a personalized, detailed plan they can follow in retirement.”

The report recommends that plan sponsors offer participants a range of retirement-income solutions. Recordkeepers and plan advisors can help participants understand how the products may work together, Bailey wrote.

A separate Cerulli report found that 3.5% of wealth advisors’ new clients come from the 401(k) plans they work with. Among advisors who specialize in defined-contribution plans, the share is 37%. Advisors also reported that they want more support from their home offices when moving plan participants into advisory relationships.

Clients may have several 401(k) accounts and individual retirement accounts that need to be considered together, according to Sri Reddy, Principal Financial Group’s senior vice president of retirement and income solutions. Advisors should track whether assets are held in pretax or after-tax accounts, how withdrawals will be made and how required minimum distributions will be handled.

“You don’t want to make your clients experts, but you want to give them enough information and knowledge so they feel like they’re somewhat in control of co-piloting the decision with you,” Reddy said. “But at the end of the day, they’re trusting you and your judgment.”

Cerulli also reported that assets in collective investment trusts rose 25% in 2025 and have increased by about 20% annually since 2019, except in 2022. Bailey wrote that advisory and consulting firms are assessing private-market investments in defined-contribution plans and retirement-income products, including their liquidity, valuation methods and fees.