Americans are increasingly worried that retirement will be less secure for them than it was for their parents.
About 76% of workplace savers surveyed said they believe their generation will have less certainty about retirement income than previous generations, according to a new BlackRock survey. The share of those concerned has steadily climbed since 2021, when it was 67%.
The survey also found strong interest from respondents in retirement-plan features designed to provide income in retirement. BlackRock, which commissioned the survey, is among the asset managers that offer annuity products in 401(k)s.
The firm, with research company Escalent, polled 1,312 workplace savers between April 15 and May 16.
Women are more concerned than men about outliving their savings and about generating retirement income, according to BlackRock. Yet, they’re less likely to adopt guaranteed income solutions, the survey found.
“They’re living longer. Of anyone who would really need that lifetime income, it would be women, yet they’re not asking,” said Jaime Magyera, head of retirement and U.S. wealth advisory at BlackRock.
Annuities ‘a drop in the ocean’ of 401(k) assets
Annuity options are available in a small number of employer-sponsored retirement plans, typically within target-date funds. These funds hold a mix of assets that becomes more conservative as retirement approaches.
Structures for those including an annuity vary. Some target-date funds offer an option for older workers to use part of their savings to buy an insurance contract that converts an upfront lump sum into monthly lifetime payments; others allow for the withdrawal of a set percentage of savings each year for the participant’s life.
A recent survey by the Plan Sponsor Council of America, a trade group, found that 5% of respondents indicated they offer a target-date fund with an annuity, and 15% said they are considering it.
Assets in target-date strategies with annuities grew to $44 billion at the end of March 2026, up from $25 billion a year earlier, according to Morningstar. That’s less than 1% of the more than $4.8 trillion in target-date funds at the end of 2025.
“Target-dates with annuities are still a small drop in the ocean of target-date assets, but there are signs that more plans are adopting these strategies and reasons to believe the growth will accelerate,” according to the Morningstar report.
The Department of Labor recently proposed a rule to make it easier for employers to add alternative assets — including lifetime income investment strategies, such as annuities — into 401(k), 403(b) and defined contribution plans. There’s also a bipartisan bill, the Retirement Simplification and Clarity Act, that would allow workers to roll over 401(k) assets into a qualified annuity.
A number of major financial firms, including BlackRock, JP Morgan Asset Management, Fidelity, Vanguard and TIAA, are expanding their annuity-style options within retirement accounts.
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Concerns about annuities in retirement plans
Some experts say they are skeptical about the suitability of annuities in workplace plans.
“The guidance from the Department of Labor is all about how to reduce your liability in case your workers try to sue you,” said Eileen Appelbaum, a senior economist and co-director at the Center for Economic and Policy Research, a think tank that specializes in economic issues. “It’s not about improving guardrails, and it’s not about raising standards for investment in riskier assets.”
Financial advisors are often wary of annuities because of the cost, lack of liquidity, and complexity. While annuities within target-date funds in retirement plans may avoid those issues, it is still important to understand their limitations.
“You have to be careful on the type of annuity,” said Silvia Kwan, CEO of Ellevest, a wealth management and financial planning firm.
Investors should understand whether lifetime income is available in the fund, whether the monthly payment is fixed or inflation-adjusted, and what the fees will be, experts say.
“That’s really where I think having a financial advisor to help you think through that — not only whether [including] alternatives is appropriate and suitable for you, but also what kind of annuity — makes sense.”
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