Target-Date Funds With Annuities Reach $44 Billion as 76% Fear Weaker Retirement Security
Updated
Updated · CNBC · Jun 25
Target-Date Funds With Annuities Reach $44 Billion as 76% Fear Weaker Retirement Security
3 articles · Updated · CNBC · Jun 25
Summary
$44 billion sat in target-date strategies with annuities at the end of March 2026, up from $25 billion a year earlier, though they still account for less than 1% of target-date assets.
76% of workplace savers told BlackRock they expect less certainty about retirement income than their parents had, up from 67% in 2021, helping drive interest in guaranteed-income features.
Employer adoption remains early: 5% of plan sponsors said they already offer a target-date fund with an annuity, while 15% said they are considering one.
Washington and major asset managers are pushing the market forward, with the Labor Department proposing easier use of lifetime-income strategies in retirement plans and firms including BlackRock, Fidelity, Vanguard and TIAA expanding offerings.
Skeptics still warn annuities can bring high costs, complexity and limited liquidity, making payout terms, inflation protection and fees critical for workers evaluating these options.