Retirement Plan Trends: Insights Shaping 2025 Strategies

1. Asset Allocation: Asset allocation is a predominant part of our consultants’ conversations with employees, with two key points standing out. First, employees recently have a heightened interest in learning more about asset allocation and how it can affect their retirement accounts. Specifically, employees want a better understanding of where their money is invested in hope of outpacing inflation and maximizing return potential. Second, we’re seeing an increase in employees utilizing an asset mix that may be more aggressive than their age-appropriate allocations. The rationale for taking greater risk is to “make up” for either a late start of saving for retirement, or not contributing enough throughout their careers.
2. Market Volatility: 2025 has already seen its fair share of market fluctuation, which in turn creates an increase in meeting requests with our Retirement 1-on-1® consultants. During these conversations, consultants heard concern about investments, as well as if employees should increase their retirement plan contributions to take advantage of market fluctuations. At the opposing end of the spectrum, we also see apprehension from employees consider whether or not to stop contributing to their retirement savings entirely, due to the fear of “losing all of their savings.” Looking toward the second half of the year, we anticipate even greater demand for both virtual and on-site meetings.
3. Pre-Tax vs Roth: SECURE 2.0 has made the already popular Roth contribution source in retirement plans even more prevalent, as companies prepare for the “rothification” of catch-up contributions starting in 2026. In turn, this has made employees more aware of the Roth option, and many consider utilizing it. Higher earners appear to be leading these conversations as participants with an income exceeding $145,000 will be required to make catch-up contributions using the Roth option.
4. Influencer Influence: Like it or not, social media is everywhere and encompasses topics from fashion trends to job interview tips, and includes investment recommendations. More employees are taking notice of financial influencers and their investment advice, with some wanting to implement specific recommendations garnered from influencer videos. As encouraging as it is to hear employees are expanding their investment knowledge, a reminder to proceed cautiously with advice from perceived experts for personal investment decisions is warranted.
5. Debt and Inflation: From student loans to credit cards, debt can take many forms throughout your employees’ life cycles. The desire to pay off debt is making it harder for employees to prioritize contributions to their retirement savings. Inflation concerns have employees considering their reduced purchasing power, which in turn limits the possibility for contributing additional funds to savings.

As part of PNC’s retirement education solution, employees have engaged with our Retirement 1-on-1 offering more than ever. This program offers employees the flexibility to schedule a call with a dedicated education consultant at their convenience and as often as needed to help ease their minds and answer questions throughout the year. Appreciation for this service has been echoed through employee conversations, as the uncertainty of the market drives the demand for meeting requests.

Financial education is a foundational element to your retirement plan strategy and as we’ve heard, it is more important than ever. If employee education is not currently a part of your retirement plan offering, reach out to your PNC Retirement Plan Advisor to discuss PNC’s comprehensive education offering.