Retirement confidence is on the rise among American workers, but a new BlackRock study uncovers a striking disconnect between how employees view their financial preparedness and how employers see it.

According to the report, 64% of workplace savers believe they are on track for retirement. Yet only 38% of employers agree that their employees are truly retirement-ready. On the surface, employee optimism might look encouraging — but dig deeper, and the numbers tell a different story.

Rising Confidence, Slipping Contributions

Saver confidence has improved dramatically over the last decade, climbing 23%. But at the same time, median contribution rates have slipped to about 10% of salary in 2025, down from 12% in 2022. That drop may seem small, but over the course of decades, it can make a significant difference in retirement outcomes.

The mismatch between employee confidence and actual savings behavior suggests that many workers may be underestimating the long-term impact of inflation, healthcare costs, and market volatility. Employers, who are closer to the realities of plan design and outcomes, appear to be sounding the alarm.

Why Plan Design Matters More Than Ever

The findings underscore an important truth: confidence alone doesn’t create retirement security. What bridges the gap is thoughtful, well-structured plan design that nudges participants toward healthier financial behaviors.

Key features are proving to be essential:

• Automatic Enrollment & Escalation: Ensures employees start saving early and increase contributions over time.
• Managed Allocations & Target-Date Funds: Help workers avoid common mistakes and stay diversified.
• Catch-Up Contributions: Critical for workers in their 50s and 60s who need to close savings gaps quickly.
• Efficient Administration: Keeps plans compliant and minimizes friction for both employers and employees.

Without these mechanisms, even confident employees can fall short of their retirement goals.

How RetireBetter Closes the Gap

At RetireBetter, we design plans with outcomes in mind. Whether it’s 401(k), 403(b), 457(b), or Cash Balance Plans, our approach combines:

• Deep plan design expertise that aligns contributions, matches, and features with long-term goals.
• Personalized matching strategies to encourage stronger participation and engagement.
• Full fiduciary or non-fiduciary administration support, giving employers flexibility and confidence in their compliance posture.

By focusing on what delivers results, we help employers create retirement plans that do more than inspire confidence — they produce measurable progress toward retirement readiness.

The Bottom Line

The BlackRock report makes clear that a gap exists between perception and reality when it comes to retirement preparedness. Employees may feel secure, but slipping contributions and rising costs could leave them short. Employers have a crucial role to play in closing that gap — and it starts with smarter plan design.

At RetireBetter, we believe that every plan should be future-proof, built not just to meet today’s expectations but to withstand tomorrow’s challenges.

It’s time to re-examine your plan design.

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