New research from Voya Financial underscores that a large majority of public‑sector workers feel well‑positioned for retirement, yet significant gaps in pension literacy, digital engagement, and trusted guidance persist. The study, titled Beyond the Pension: What Really Drives Retirement Confidence for Public Employees, surveyed 598 full‑time employees—including 198 government workers and 400 private‑sector peers—between September 17 and October 9, 2025. While 89 % of government employees reported feeling prepared for retirement, the data reveal that nearly one‑in‑five cannot even identify their pension tier, and almost 80 % are actively seeking additional investment guidance. These findings highlight a clear opportunity for employers, benefits providers, and financial advisors to deepen education, improve technology access, and blend AI tools with human expertise to raise confidence across the public workforce.
Voya Releases “Beyond the Pension” Study on Retirement Confidence
Voya Financial, Inc. (NYSE: VOYA) published the report Beyond the Pension: What Really Drives Retirement Confidence for Public Employees. The study surveyed 598 full‑time workers—198 government employees and 400 non‑government employees—between September 17 and October 9, 2025. It found that 89 % of government employees consider themselves prepared for retirement, compared with 81 % of their private‑sector peers.
Key metrics include:
- Government workers who engage a financial advisor are about 1.6 times more likely to report increased confidence in meeting retirement goals over the past two years.
- Nearly 80 % of public‑sector employees expressed interest in receiving guidance to feel more confident about investment decisions.
- More than one‑fifth of surveyed government employees could not identify their pension plan tier, a factor linked to lower confidence.
Voya, the leading provider of 457(b) deferred‑compensation plans for government entities, serves roughly 4 million participants and reported an average client tenure of 31 years as of December 31, 2025. The firm added approximately $30 billion in assets and 1 million new participants across multiple government plans from January 2025 through Q1 2026.
Education, Digital Tools, and AI Shape the Retirement Landscape
The research underscores three areas where public‑sector employers can strengthen retirement confidence:
- Pension Literacy – Knowing one’s pension tier strongly correlates with confidence, yet 20 % of respondents were unsure of their tier. Voya’s data suggest that improving pension education could close this gap. The study notes that employees who understand how their pension interacts with personal savings and Social Security are better equipped to make strategic decisions that reinforce long‑term confidence.
- Digital Engagement – While 74 % of government employees are very interested in online tools that consolidate pension and defined‑contribution information, many report limited use of existing plan websites and mobile apps. Awareness and accessibility appear as critical barriers. Voya observed that participants often do not engage with current digital platforms, indicating that simply offering a tool is insufficient; employers must promote visibility, simplify navigation, and ensure mobile‑friendly experiences to drive adoption.
- AI Adoption – Approximately 75 % of respondents trust AI for budgeting, and over two‑thirds trust it for developing a financial plan. Trust drops for more complex investment decisions, especially among older workers. Gavin Gruenberg, Voya’s Government Market Retirement Sales Leader, emphasized that employers should “help employees use [AI] responsibly while ensuring they still have access to personalized guidance when they need it.” This suggests a hybrid model—leveraging AI for routine calculations while reserving human advisors for nuanced portfolio choices—could maximize both efficiency and confidence.
Financial pressures also affect confidence: over half of government employees cite rising everyday expenses as a barrier to saving, and just under one‑third point to insufficient income—rates higher than those reported by non‑government workers. These stressors reinforce the need for holistic financial‑wellness conversations that address budgeting, debt management, and emergency savings alongside retirement planning.
Implications for Financial Institutions and Public‑Sector Employers
For banks, wealth managers, and benefits providers, the study signals a clear demand for integrated advisory services and user‑friendly digital platforms tailored to public‑sector employees. The strong interest in combined pension‑and‑DC dashboards suggests a market for solutions that simplify data aggregation and presentation.
Advisors who can demonstrate measurable impact on confidence—such as the 1.6 × likelihood boost observed among those who work with a financial professional—may find a receptive audience among government workers seeking guidance.
At the same time, the mixed trust in AI indicates a need for hybrid models that blend algorithmic efficiency with human oversight, particularly for complex investment advice. Institutions that can position themselves as trusted partners in both education and technology deployment could deepen relationships with public‑sector clients.
Key Takeaways
- 89 % of government employees report being prepared for retirement, versus 81 % of private‑sector workers.
- Employees who work with a financial advisor are approximately 1.6 times more likely to feel confident about meeting retirement goals.
- 74 % of public‑sector workers express strong interest in digital tools that display pension and defined‑contribution balances together.
FinanceInsyte's Take
Voya’s findings confirm that public‑sector employees possess a solid retirement foundation but still need targeted education and accessible guidance. Financial institutions that can deliver integrated digital experiences and combine AI efficiency with human advisory support are well positioned to meet this demand. Ongoing monitoring of pension‑literacy initiatives and AI trust levels will be essential to gauge the effectiveness of emerging solutions.
Source: Businesswire
