SAVVI Research Team

86% of employees would feel more confident taking action when guidance recommends the best course of action for their specific situation.

The biggest threat to retirement assets isn't a market downturn, it's participant decisions.

Every year, hundreds of billions of dollars leave workplace retirement plans. In 2022 alone, $670 billion moved from employer-sponsored retirement plans into traditional IRAs.¹ But assets don't only leave through rollovers. Leakage accumulates one hardship withdrawal, one unresolved loan, one paused contribution, and one missed decision at a time.¹

SAVVI's Finances on Fire research reveals what's driving these decisions: financial pressure, incomplete guidance, and limited understanding of the long-term consequences.

The opportunity isn't to provide more retirement education. It's to deliver personalized decision intelligence before participants make decisions that permanently impact their retirement outcomes and plan assets.

Participants Are Making Decisions That Reduce Retirement Assets

• 22% have taken a hardship withdrawal or early distribution. Among those participants:
  
  • 56% did not fully understand the long-term consequences
  • 66% would have explored other options had they understood the full implications
  • 61% wish they had received personalized guidance before making the decision
    
    • These findings point to a significant and preventable guidance gap.

• 16% have borrowed from their retirement account. More than one-third did not know that leaving their employer could turn an outstanding loan into a taxable distribution.

• 28% have reduced retirement contributions
  
  • 10% paused contributions completely
  • 18% reduced their contribution rate

The Pressure is Growing

• 61% now expect to retire later than planned
  
  • 64% worry their savings won't be enough
  • 52% cite rising healthcare costs
  • 29% cite market volatility

• Meanwhile, 40%+ are unsure of their future:
  
  • 46% don't know how much they'll need for retirement
  • 46% don't know whether they're on track
  • 52% feel less confident about retirement than they did one year ago

What This Means for Retirement Providers 

• Leakage starts long before retirement. Assets leave plans through hardship withdrawals, loan defaults, contribution pauses, and rollover decisions.
• Education alone isn't enough. Participants want personalized guidance before they act, not after.
• The participant relationship is changing. Employees increasingly turn to AI and outside financial tools when they can't get personalized answers from their workplace provider.
• Better guidance creates a competitive advantage. Helping participants make better decisions strengthens retirement outcomes while improving asset retention.

The Trust Advantage

Employees want a more intelligent financial experience.

• 68% Trust an employer-sponsored financial guidance platform more than any other source.
• 78% Would share their complete financial picture to receive personalized guidance.
• 81% Want one experience showing how benefits, retirement savings, debt, taxes, and other financial priorities work together.
• 86% Would feel more confident acting on guidance that recommends the best course of action for their specific situation.

The future for the retirement industry isn't just about managing retirement assets, it's about helping participants make better financial decisions before assets leave the plan.

retireSAVVI extends the value for participants by delivering personalized guidance across the participant journey, from contribution decisions today to retirement income tomorrow.

READY TO GET STARTED? Schedule a retireSAVVI demo

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Source: SAVVI Financial, Finances on Fire: How Employees Are Navigating Financial Decisions in the Age of AI (2026). Survey of 600+ full-time U.S. employees ages 25–60, benefits-eligible through their employer, conducted May 21–27, 2026, at a 95% confidence level with a ±4% margin of error. Read the full report.

¹ Source: Investment Company Institute (ICI), The Role of IRAs in US Retirement Planning, 2023.

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FAQ

What is retirement leakage?
Retirement leakage is the loss of retirement plan assets before retirement, through hardship withdrawals, loan defaults, contribution pauses, and rollovers into outside accounts. According to the Investment Company Institute, $670 billion moved from employer-sponsored retirement plans into traditional IRAs in 2022 alone.

Why do participants take hardship withdrawals or early distributions?
According to SAVVI Financial's 2026 Finances on Fire research, 22% of employees have taken a hardship withdrawal or early distribution. Of those, 56% did not fully understand the long-term consequences, and 66% said they would have explored other options had they understood the full implications.

Could better guidance have prevented these decisions?
Often, yes. SAVVI's research found that 61% of employees who took a hardship withdrawal wish they had received personalized guidance before making the decision, and 86% of employees overall said they would feel more confident taking action when guidance recommends the best course for their specific situation.

What can retirement providers do to reduce leakage?
Retirement providers can reduce leakage by delivering personalized guidance before participants act, not after. SAVVI's research found that 78% of employees would share their complete financial picture to receive personalized guidance, and 68% trust an employer-sponsored financial guidance platform more than any other source, indicating the opportunity already exists inside the plan relationship.

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