Defined contribution Mind the gap
Mid-cap equities offer a compelling yet often overlooked opportunity for defined contribution (DC) plans.
March 17, 2025
Participant research
2024 Defined Contribution Participant Pulse Survey
Key takeaways
Inflation Worries
Participants’ top investment and financial concerns are tied to inflation and a higher cost of living.
Risk Aversion
Baby boomers in particular often have a negative reaction to the term “investment risk."1
Flexible Income
Most participants prefer in-plan retirement income options that provide greater flexibility versus guaranteed income.
In our latest survey of 583 large DC plan participants across the US, we explored how they think and feel about various aspects about their DC plans, including what keeps them up at night, drivers of investing and savings behavior, language preferences, and retirement income.2
~Female millennialWhen I envision retirement, I picture having the peace of mind that comes from knowing my basic needs are met, and having the freedom to pursue the things I enjoy…
Footnotes
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1
Generational age bands as of 2024: Millennial, ages 28 to 43 (born 1981 to 1996); Generation X, ages 44 to 59 (born 1965 to 1980); and baby boomer, ages 60 to 78 (born 1946 to 1964).
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2
Invesco partnered with Ipsos to conduct an online survey of 583 defined contribution plan participants (May-July 2024). Participant respondents had following characteristics: Age 25-65 years old; Personal income $30,000+; Employed full-time for an organization for 1+ years; Employer has 1,000+ employees; Actively contributing to a defined contribution plan; Does not work in education, financial services, the federal government, or involved in the management of or decisions regarding employer’s retirement plans.
Related insights
Participant research Jumpstart the retirement income conversation
In our research, we found three-quarters of plan participants wanted their plan sponsors to start the retirement income conversation earlier.
October 18, 2022
Participant research Overcoming fear and inertia
In our research, we found that a primary financial goal for almost all participants’ DC plan savings was to maintain their pre-retirement lifestyle.
October 18, 2022
Download the full research report
Our latest defined contribution research reflects upon the evolving retirement industry today as it faces inflation worries, risk aversion for older generations, and options for flexible retirement income solutions. We connected with 583 DC participants to better understand their preferences for creating retirement income and what features, resources, and approaches to communications resonated across the generations.
