New TIAA Institute research finds professional guidance narrows the gap between retirement dreams and reality
Working with a financial professional appears to meaningfully soften the regrets that plague American retirees, yet only a quarter of the population currently taps that resource, according to new research from the TIAA Institute.
It found that retirees who work with an advisor report substantially fewer regrets across the board than those going it alone, with the starkest gap appearing on underestimating major life events: just 26% of advised retirees regret this, against 43% of those without professional support.
Currently, 24% of adults across the surveyed age range work with a professional for financial, tax, retirement or investment planning, and retirees are nearly twice as likely as non-retirees to have that support in place.
Those with an advisor are far more likely to describe retirement planning using words like secure, confident and excited, and are considerably less likely to call the process overwhelming or to admit fear of getting savings and investment decisions wrong.
"The retirees in this study are sending a clear and urgent message to everyone still in the workforce: what happens today will define the retirement you experience tomorrow," said Surya Kolluri, head of TIAA Institute. "A retirement that meets or exceeds expectations requires planning for all the things you enjoy plus the unexpected. Our research shows having access to the right tools, and the right guidance at the right time leads to better preparation, greater confidence and fewer regrets."
Funding shift
The research also points to a generational pivot in how Americans expect to pay for retirement.
Current retirees leaned most heavily on Social Security, followed by employer pensions, but those who haven't yet retired expect their largest income source to be money already saved inside retirement accounts, with Social Security dropping to second place. Confidence in Social Security tracks closely with age: 94% of boomers who expect to retire plan to draw on it, compared with just 51% of Gen Z.
Roughly six in ten agree they understand how to secure a steady income stream that lasts through retirement and feel confident they can do so, but only about one in five hold either view strongly. Among retirees already living the reality, three-quarters say they have that guaranteed income secured, with almost four in ten strongly agreeing.
Career disruption
Job and employer changes are also reshaping the planning conversation.
Roughly eight in ten adults have switched employers at least once during their working life, averaging 4.2 moves, and each transition brings decisions with real consequences for retirement savings. Nearly a third have moved from an employer without a retirement plan to one that offers one, but a quarter have left a job before fully vesting, forfeiting employer matching contributions along the way. Three in ten have rolled a 401(k) into an IRA, and roughly a quarter have rolled savings into a new employer's plan instead, decisions the report suggests are natural moments for professional guidance.
Auto-enrollment is also gaining traction as a participation driver: seven in ten working Americans say their employer offers a retirement plan, 89% of those offered one are enrolled, and six in ten of the enrolled arrived there through some form of automatic enrollment.
Public sentiment
Beyond the advisor relationship, the survey uncovered a wide gap between when Americans actually retired and when today's workers expect to.
Current retirees left the workforce at an average age of 57, while those not yet retired expect to work until 62, and roughly half anticipate delaying that further. A quarter of non-retirees don't expect to retire at all.
Savings regret dominates how current retirees look back: 76% wish they'd started saving earlier and 71% wish they'd saved more, according to the TIAA Institute.
Roughly half of US adults have exited the workforce for more than a year at some point, most commonly to care for children or due to a career change, burnout, layoff or relocation, an experience the report says future retirees need to plan around more deliberately than the current generation did.
On the lifestyle side, spending time with family tops what retirees say they enjoy most, while travel is the most eagerly anticipated activity among those still working toward retirement, though it ranks only third for enjoyment once retirees actually get there.
