Cerulli: 46% of pre-retirees want anytime withdrawals, 39% guaranteed income

Cerulli Associates' U.S. Defined Contribution Distribution 2026 study found 46% of pre-retirees want the ability to withdraw their money at any time. That was the largest share among the preferences Cerulli reported. InvestmentNews reported the study Oct. 9. A guaranteed monthly payment lasting beyond the point when savings run out drew 39%. Nearly 40% want a personalized, detailed and actionable plan to follow in retirement, and 31% want the ability to change their investments.

Cerulli concluded that building a retirement income ecosystem inside defined contribution plans requires more than an investment product. The research names participant advice and planning, education for plan sponsors and intermediaries, and recordkeeper infrastructure as the other components.

DC industry consultants told Cerulli that the average plan may need two or three different options on the menu to meet participants' varied needs. Flexibility and a lifetime guarantee pull against each other, because a payment stream that outlasts savings generally requires giving up control of the assets behind it.

"Given the high degree of personalization that goes into developing and executing on a retirement income strategy, meeting the needs of all, or even most, participants with a single retirement income solution is challenging," Chris Bailey, a director at Cerulli, said in a statement. "Most pre-retirees are uncomfortable making key retirement income decisions without an advisor's help," he said.

Cerulli said 70% of recordkeepers described support for guaranteed income solutions and improving retiree distribution options as a priority for their organizations.

A separate recent Cerulli and Morningstar study found that just 10.2% of an advisor's wealth clients came from a DC plan relationship, a figure that measures where advisory assets originate rather than participant demand.

"Recordkeepers and plan advisors have an opportunity to help participants develop retirement plans to utilize these products effectively," Bailey said. "Perhaps increased access to planning and advice will reduce the need for flexibility that intermediaries and participants seek."