2025 Reference Point Report on Retirement Trends

This technical report by T. Rowe Price presents findings from the 2025 Reference Point report, which analyzes data from over 2 million active workplace retirement plan participants. The report identifies key trends and potential opportunities for plan sponsors and financial consultants to enhance financial outcomes for participants. It discusses various aspects of retirement planning, including target date investments, retirement income, emergency savings, and the implications of the SECURE 2.0 legislation. The report highlights that a significant percentage of participants lack adequate emergency savings, with 64% unable to cover six months of expenses. Additionally, it notes that many retirement-age participants exit their plans shortly after termination, emphasizing the need for solutions that encourage retention of retirement savings. The report also outlines the growing adoption of flexible distribution options by plan sponsors to better accommodate retirees' needs.