What should plan sponsors take into consideration when designing a Retirement Income Tier?

This installment of our Decoding Retirement Income seeks to help plan sponsors determine which retirement income options to consider for their “Retirement Income Tier.”  As discussed in our Decoding Retirement Income series, The Retirement Saver Preference Gap and The Plan Sponsor Preference Gap, many individuals express a desire for “guaranteed income for life” while actual adoption remains low.  Evaluating retirement income choices from approximately 5,000 individuals and 250 plan sponsors,¹ and employing a statistical method known as a TURF analysis,² we can determine which set of retirement income options best aligns with a multitude of retirement income needs of a population. 

The data suggests starting with a core product that has broad appeal like one offering moderate income and full access to savings and then adding complementary products to capture remaining segments. For example, adding a product with guaranteed lifetime income may reach a specific, additional group that values guaranteed income compared with others who prefer more flexibility.

In the full download, we share key insights on: 

• The "One Size Does Not Fit All" Paradigm: Because participant preferences can vary significantly, plan sponsors should consider the potential benefits of offering a curated set of approaches designed to increase overall plan fit.
• Maximizing Participant Fit: Identifying which strategies provide the most "reach" individually and which subsequent options provide the most "incremental gain" can help sponsors to build a tier that captures different segments of the population, such as those prioritizing full access to savings versus those seeking guaranteed lifetime income.
• Increasing Reach through Diversification: Plan sponsors may want to identify an efficient set of offerings in order to increase utilization across a diversified population. 
• Insights Informing Feature Utilization Expectation: Determining which set of offerings is likely to increase reach means a diversified tier can satisfy a large majority of the population, suggesting a much higher potential for overall plan engagement.

¹ The data represents information from the survey that was  conducted by Goldman Sachs Asset Management and Qualtrics Experience Management between June 27, 2025–July 21, 2025. Views expressed are those of survey respondents.
² Total Unduplicated Reach and Frequency (TURF) analysis is a statistical method used in market research to determine the optimal combination of products, services, or messages to maximize consumer reach.