At the same time, challenges remain, particularly around ensuring participants are saving enough and effectively managing their long-term financial and investment needs.
Survey findings highlight a growing commitment among plan sponsors to enhance retirement outcomes. This year’s research, Scaling what works, shaping what’s next, captures insights from 750 U.S. plan sponsors, providing a comprehensive snapshot of their perspectives and actions in refining retirement offerings.
“Our 2025 Plan Sponsor Survey highlights a shift in retirement planning with plan sponsors recognizing the need for proactive strategies to enhance participant outcomes,” said Alyson Frost, Head of Retirement Insights at J.P. Morgan Asset Management.
More than 80% of plan sponsors feel a sense of responsibility for employees’ financial wellness – a sizable increase from 10 years ago, according to JPMorgan. Here are three key trends that have emerged from the survey.
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Plan design
Nearly half (49%) of respondents now favor a proactive approach to plan design, reporting higher satisfaction across key measures, including participation and contribution rates, investment performance and participation education quality. Despite this progress, there is still opportunity to continue to increase contribution percentages and participant engagement.
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To maximize the effectiveness of their offering, plan sponsors should consider embracing proactive plan design strategies that cater to the diverse needs of a multi-generational workforce, including leveraging automatic features and investment defaults to enhance participant engagement and satisfaction.
“Our survey highlights the importance for plan sponsors to refine their offerings by embracing thoughtful design and making strategic investments, which can greatly enhance participants’ retirement readiness,” said Meghan Conklin, Vice President, Retirement Insights, at J.P. Morgan Asset Management. “Understanding how regulatory advancements, such as SECURE 2.0, can be leveraged effectively in plan design is crucial, ensuring that options not only complement but also adapt to a more modern workforce.”
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Two of the most effective ways plan sponsors can boost retirement readiness are by getting as many employees as possible investing in the plan and getting them to contribute as much as possible, according to JP Morgan. Automatic enrollment for new hires and periodic re-enrollments makes it easier for employees to get started. Also, setting contribution rates high enough, without discouraging enrollment, can significantly improve long-term outcomes.
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Plan investments
More than half (53%) of plan sponsors do not realize they are a plan fiduciary. Only 32% are extremely or very confident that a majority of their participants have an appropriate asset allocation. However, among those who express high confidence in their participants’ allocations, most employ a qualified default investment alternative (QDIA), with 94% of these being TDFs. Of those that offer a TDF, either as a QDIA or as part of the plan investment menu, only two-thirds feel they understand them at least reasonably well. But plan sponsors that work with an advisor are more likely to understand their TDFs.
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To help participants achieve long-term retirement security, choosing appropriate investment options is essential, particularly when it comes to default strategies that often shape the outcomes for the majority of plan participants. Encouragingly, the widespread adoption of TDFs represents a meaningful advancement, offering professionally managed, age-appropriate strategies that can help improve overall confidence in participant asset allocation.
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Still, the persistent lack of fiduciary awareness among many plan sponsors remains a serious concern. Without a clear understanding of their fiduciary responsibilities, plan sponsors may unknowingly expose themselves and their plans to risk, while missing key opportunities to enhance plan design and investment strategy. Bridging this knowledge gap is essential to ensuring that strong investment frameworks are backed by equally strong governance.
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Retirement income
Nearly 80% of plan sponsors believe their plans should generate retirement income, with 61% considering adding in-plan income options this year. As retirement income solutions become increasingly central to DC plans, plan sponsors are encouraged to establish clear objectives for in-plan solutions, carefully assessing which products best align with their goals and participant demographics to meet the growing demand for income-generating investments.
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The universe of retirement income solutions is expanding rapidly, with both established and innovative options now available. Each solution offers unique features, benefits and trade-offs. Gaining a thorough understanding of these choices is essential for informed decision-making.
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With many plan sponsors looking for more education and clarity on the topic, advisors have a key opportunity to frame these strategies not as a problem to solve, but as a powerful way to enhance participants’ financial well-being and reinforce the plan’s value proposition.
Enhancing participant education and communication is also crucial, as fewer than half of respondents express high satisfaction with their providers’ efforts in this area. By streamlining the participant experience through seamless integration of educational resources and robust communication strategies, plan sponsors can empower participants to make informed decisions, particularly during critical phases such as onboarding and retirement preparation.
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