Prudential study reveals retirement planning gaps

A new study from Prudential Financial Inc. found that while most people around the world are confident about their retirement preparedness, that confidence may outpace their preparation.

Prudential’s 2025 Global Retirement Pulse Survey, released Monday, is the first international edition of the company’s long-running Pulse Survey series. Its findings say that 89% of “mass affluent” Americans believe they’ll be able to cover essential costs in retirement, but many have not taken key steps to ensure their savings will last.

The company defined the mass affluent population as people 30 and older who have at least $100,000 in investable assets.

About 60% of affluent U.S. adults work with a financial adviser, 32% have a written retirement plan and 25% have a clear withdrawal strategy, according to the survey of 4,200 adults across the U.S., Brazil, Mexico and Japan.

“One of the most fundamental components of effective retirement planning is envisioning your future self — the life you want and how you expect to fund it securely,” said Caroline Feeney, global head of retirement and insurance at Prudential. “This year’s Pulse Survey makes clear that even across different economic and cultural contexts globally, one trend emerges: while many people feel ready, far fewer have taken action to ensure they’re ready.”

The report highlights the fact that envisioning retirement plays a key role in preparedness. Americans who can clearly picture their post-work life are nearly twice as likely to work with an adviser — and three times as likely to have a written plan.

Many Americans reported that they expect to keep working past traditional retirement age. Nearly 80% said they would consider working in retirement, with about half interested in self-employment or freelance work.

That finding dovetails with the recent 2025 U.S. Retirement Survey by Schroders, which found that 87% of Americans who’ve yet to retire expressed at least some concern about not knowing how to produce income in retirement.

Supporting finances for the family is also a concern. Nearly one-third of U.S. respondents say they expect to financially support their adult children, while 29% anticipate helping both their children and parents — a dynamic commonly described as the “sandwich generation” effect that Gen X is known for.

But professional guidance — particularly from human advisers — is boosting confidence levels. Only 23% of U.S. respondents said they trust artificial intelligence for financial advice as much as a human adviser.

For Americans who work with these professionals, 94% said they are confident they can cover essential retirement expenses, compared with 83% of those without advisers.

Fewer than 60% of couples, however, reported that they’ve discussed retirement plans with their partners.

While most affluent Americans feel optimistic, Prudential said the findings point to a need for better planning and “decumulation” strategies — structured ways to draw down assets in retirement.

Two-thirds of U.S. respondents said they would prefer a guaranteed monthly income over a lump-sum payout, but only 29% currently use annuities, which can provide lifetime income.

“Retirement today is more fluid, more personal, and more complex than ever,” said David Blanchett, head of retirement research at Prudential. “Whether you’re traveling, pursuing your passions, or caring for family, everyone needs an income strategy to fund a secure retirement.

“Guaranteed lifetime income creates a ‘license to spend,’ enabling people to be more financially independent and define what retirement security means for them.”