Allspring Study Finds Declining Retirement Confidence and Rising Interest in AI-Powered Personalization

Allspring Global Investments released its 2025 retirement study, "By Default or By Design?," revealing a decline in financial confidence among retirees and near-retirees, according to a press release. The survey of more than 1,500 U.S. adults found that only six in ten respondents feel financially secure, with confidence dropping most sharply among women, older near-retirees, and younger retirees.

The study indicates that 84% of near-retirees prefer investment options other than target date funds, reflecting a demand for more personalized financial strategies. Only one in five respondents use tax-efficient withdrawal methods, and most lack accurate knowledge of Social Security benefits. The report highlights that delaying Social Security claims can significantly increase lifetime income.

Distrust of artificial intelligence was widespread, with 43% of advised and 53% of unadvised individuals expressing skepticism. However, the study notes that automation and AI could play an expanding role in creating cost-effective, personalized strategies for asset allocation and withdrawals when used alongside human expertise.

Allspring’s report calls on advisors, plan sponsors, and asset managers to move beyond default approaches by integrating behavioral insights, education, and AI-driven personalization to improve retirement outcomes.