Voya Investment Management survey shows target-date funds increase retirement participants’ confidence

NEW YORK--(BUSINESS WIRE)--Voya Investment Management (Voya IM), the asset management business of Voya Financial, Inc. (NYSE: VOYA) announced today the results of a survey focused on the views of investors in relation to target-date funds (TDFs). The results reveal a clear trend: Participants who invest in TDFs feel significantly more confident about their retirement journey.

According to the survey, 71% of employed TDF investors feel confident about reaching their retirement goals, compared with just 58% of non-investors. The confidence gap widens when looking at stress reduction: 91% of employed TDF investors agree that investing in a TDF alleviates the stress of retirement planning versus 73% of those who don’t invest in TDFs.

“Target-date funds aren’t just investment vehicles — they’re confidence-building tools,” said Barbara Reinhard, CFA, chief investment officer, Multi-Asset Strategies and Solutions at Voya IM. “For plan sponsors and defined contribution specialists, this finding underscores the importance of offering solutions that simplify retirement planning and empower participants.”

As the retirement landscape continues to evolve, TDFs remain central to helping millions of Americans navigate the complex journey from saving to spending, from working to retirement and from anxiety to confidence.— and nearly two times more likely than non-investors to strongly agree about their confidence (employed TDF investors at 25% versus non-investors at 13%).

“Confident participants are engaged participants,” Reinhard said. “They’re more likely to increase contributions, stay the course during market volatility and make sound decisions about their retirement timeline. By contrast, participants who lack confidence often exhibit behaviors that can derail their plans — such as withdrawing too early, taking loans against their balance or simply disengaging from retirement planning altogether.”

When asked whether investing in a TDF increases their confidence in making good investment decisions, 95% of employed TDF investors agreed — with 39% strongly agreeing. Among non-investors, total agreement dropped to 75%, with strong agreement at just 14%.

This confidence effect extended beyond investment decisions to participants’ overall sense of retirement security. When asked whether having a TDF would increase their confidence in having a successful retirement, 92% of employed TDF investors agreed, compared with 75% of non-investors. The gap among those who strongly agree was even wider: 39% versus 18%.

“What our survey showed is that participants who own TDFs aren’t just better invested; they’re more confident, less stressed and more engaged in retirement planning,” said Amy Vaillancourt, president of Retirement at Voya Financial. “For plan sponsors, it’s about providing tools that fundamentally improve the retirement planning experience. For financial advisors, TDFs represent an opportunity to meet participants where they are — starting with a solid foundation of professional asset management and building comprehensive retirement planning on top of that base.”

Other findings:

• Simplicity drives adoption: Among those with TDF options available within their employer-sponsored retirement plan, 83% of employed participants and 86% of retirees said they currently invest in TDFs, with the majority citing ease of use, built-in diversification, professional management and automatic rebalancing as their top reasons for investing in TDFs.
• Employed participants expressed high interest in TDFs that offer enhanced diversification (96%), a blend of active and passive underlying investments (95%) and a multi-manager approach (92%).
• 61% of employed TDF investors contributed more than 5% of salary annually to their employer-sponsored retirement plan, compared with just 50% of non-investors. Employed TDF investors were also more likely to contribute to their plans at higher rates (between 11% and 25%) than non-investors, suggesting a link between TDF adoption and more robust savings habits.

About this research

This paper is based on Voya IM’s comprehensive survey of retirement plan participants conducted in March and April 2025. The survey included over 1,100 participants, including both employed participants and retirees, with representation across TDF investors and those who didn’t invest in TDFs.

About Voya Investment Management

Voya Investment Management (IM) manages approximately $360 billion as of December 31, 2025, in assets across public and private fixed income, equities, multi-asset solutions and alternative strategies for institutions, financial intermediaries and individual investors. Drawing on a 50-year legacy of active investing and the expertise of 300+ investment professionals, Voya IM has cultivated a culture grounded in a commitment to understanding and anticipating clients’ needs, producing strong investment performance, and embedding inclusion in its business

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