Most Workers Support Guaranteed Monthly Payouts From 401(k) Plans

An overwhelming majority of American 401(k) plan participants responding to a survey said it is important that they have the option to convert their savings into guaranteed monthly payouts, according to a Nuveen and TIAA Institute study released Monday.

Of the 2,153 401(k) participants surveyed, 93% of respondents said it is important their plans offer options to convert savings into guaranteed monthly income. The survey also found that 87% of respondents believe employers have a responsibility to help ensure retirement income security. 

In comparison, fewer than 60% of respondents expressed this view in a similar 2021 TIAA survey. 

The 2025 survey highlighted a growing awareness among workers of the in current 401(k) offerings. While these plans are the main savings initiative for 79 million Americans, with assets totaling $6.8 trillion, they typically lack built-in options to convert assets accumulated in a plan into dependable retirement payouts, often referred to as “retirement income.” 

About 90% of participants surveyed said they would enjoy the inclusion of a fixed annuity in their 401(k) plan, showing interest in using such tools to secure monthly payments throughout retirement. Many also favored integrating fixed annuities into target-date investments.

“Incorporating fixed annuities into 401(k) plans is a simple, effective, and low-cost way to fill the retirement income design gap,” said Brendan McCarthy, head of retirement investing at Nuveen, which was acquired by TIAA in 2014, in a statement. “A well-designed decumulation strategy isn’t just a nice-to-have—it’s essential to realizing the full value of a 401(k) plan, and workers agree.”

Still, many retirees struggle to establish plans to effectively withdraw money for retirement after spending a lifetime building the savings. In the survey, 21% of respondents said they had thought “a lot” about how to withdraw money from their 401(k) plan to provide retirement income. 

“While retirees are increasingly interested in lifetime income solutions, many struggle to develop effective withdrawal strategies,” said Surya Kolluri, head of the TIAA Institute, in a statement. “The challenge lies in converting retirement savings into sustainable monthly income—a process that remains unclear to most participants.”

“Today’s workers see guaranteed retirement income not just as a personal goal—but as a shared mission with their employer,” McCarthy said.