Nearly 80 percent of government employees expressed interest in receiving guidance to help them feel more confident about their investment decisions.
Voya Financial, Inc. (NYSE: VOYA) today released new research1 examining the factors shaping retirement confidence among public employees, finding that while government workers report higher levels of retirement preparedness than their private-sector peers, opportunities remain to improve outcomes through greater engagement, education and access to guidance.
The research, Beyond the Pension: What Really Drives Retirement Confidence for Public Employees, found that 89% of government employees report being prepared for retirement, compared with 81% of non-government employees.
Voya is the number one provider of 457(b) deferred compensation plans for government entities serving approximately 4 million plan participants with an average government client tenure of 31 years as of December 31, 20252. In addition to its strong governmental client retention, Voya has experienced meaningful organic growth, having on-boarded approximately $30 billion and 1 million new participants across multiple government plans from January 2025 through first quarter 2026.3
“The good news is that public sector employees often have a strong retirement foundation through their pension benefits,” said Gavin Gruenberg, Government Market Retirement Sales Leader, Voya Financial. “But our research shows that retirement confidence is influenced by more than a pension alone. Employees want help connecting the dots between their pension, personal savings, day-to-day financial priorities and long-term retirement goals.”
Financial guidance drives confidence
Among the most significant findings, government employees working with a financial advisor were approximately 1.6 times more likely to report increased confidence in meeting their retirement goals over the past two years than those who didn’t. At the same time, nearly 80% of government employees expressed interest in receiving guidance to help them feel more confident about their investment decisions.
Pension literacy remains a critical opportunity
The research also identified pension literacy as a meaningful driver of retirement confidence. Government employees who knew their pension plan tier were substantially more likely to report increased confidence in their retirement outlook than those who didn’t. Yet more than one in five government employees surveyed said they were unsure which pension tier they belonged to.
The benefit of a pension is just one income source to consider. Public employees need to understand how their pension, savings, and Social Security work together. By understanding the role each plays, employees can make strategic decisions that help build lasting retirement confidence.
Financial pressures continue to compete with retirement savings
More than half of government employees cited rising everyday expenses as a barrier to saving more for retirement, while just under one-third identified insufficient income as a challenge (significantly more than non-government workers). The findings suggest retirement planning conversations increasingly need to account for broader financial wellness concerns, including emergency savings, debt management, healthcare costs and housing expenses.
AI is emerging as a financial education tool
Nearly three-quarters of government employees reported trusting AI tools to help create a budget, while more than two-thirds said they trust AI to assist with developing a financial plan. However, trust declines when it comes to more complex investment-related decisions, and older workers remain significantly less likely to rely on AI for financial guidance.
“The findings point to opportunities for employers to leverage technology while maintaining access to human support and expertise,” said Gruenberg. “The opportunity for employers is not to compete with technology, but to help employees use it responsibly while ensuring they still have access to personalized guidance when they need it.”
Digital engagement remains an untapped opportunity
The research also found strong interest in digital retirement planning tools among public employees with near-universal interest in tools that allow them to view pension and defined-contribution retirement savings information in one place. At the same time, many participants reported limited engagement with existing retirement plan websites and mobile applications, suggesting awareness and accessibility may be as important as the tools themselves.
“Our research showed that 74% of government employees are very interested in online tools that allow them to review both pension plans and defined contribution plans in one place. The key is to meet employees wherever they are on their retirement journey to help them increase their financial confidence,” said Gruenberg.
- Voya Customer Research & Insights survey with Morning Consult conducted between September 17 – October 9, 2025, among 598 full-time employees (n=198 government and n=400 non-government) ages 35-70 with annual income greater than $50k and investable assets great than $75k.
- Voya internal data as of 12/31/25
- Source: Voya internal data 1/1/2025 through 3/31/2026.
Explore Hrtech Articles for the latest Tech Trends in Human Resources Technology
