Voya Financial, Inc. released a comprehensive study examining the distinct factors shaping retirement confidence among public employees. The report, titled “Beyond the Pension: What Really Drives Retirement Confidence for Public Employees,” reveals that while government workers report higher baseline retirement readiness than their private-sector peers, severe knowledge gaps, low digital engagement, and hidden financial pressures limit long-term financial stability.
The findings highlight a strong institutional foundation but a lack of individual financial clarity across the public sector. A staggering 89% of government workers surveyed state they feel prepared for retirement, outstripping the 81% reported by non-government workers.
However, this structural confidence is primarily driven by the immediate availability of public pension plans rather than active financial literacy. When evaluated beyond baseline assumptions, public employees frequently lag behind in essential investment knowledge and proactive planning behaviors.
“Pensions provide a strong foundation, but employees need help connecting pensions, savings, and everyday finances,” said Gavin Gruenberg, Voya Financial’s government market retirement sales leader. “It’s also very important to understand the details behind pension benefits. Public sector employees have a solid foundation, but many still need help translating that into informed financial decisions.”
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Identifying the Correlation Between Pension Literacy and Strategic Advice
The data highlights pension literacy as a critical driver of actual financial stability. Government workers who actively know their specific pension plan tier are significantly more likely to report high confidence in their long-term retirement outlook than those who do not (51% vs. 32%). Yet, more than one in five respondents (21%) remain unsure which specific pension tier they belong to.
This structural blindness exposes workers to significant financial risk. Employees who overestimate their future pension payouts frequently under-save in supplemental defined contribution plans, while those who miscalculate their benefits may allocate too much to retirement accounts at the expense of pressing financial priorities.
The research identifies professional financial advice as the clearest path to bridging this literacy gap:
The Advice Multiplier: Public employees who collaborate with a financial advisor are roughly 1.6 times more likely to achieve increased retirement confidence over a two-year period compared to those who plan in isolation.
The Guidance Demand: Nearly 80% of government workers express an active interest in receiving professional investment guidance to validate their asset allocations.
The Engagement Deficit: Despite this clear interest, only 54% of public sector employees met with an advisor over the past year, compared to 60% of private-sector workers.
Navigating Competing Wallet Pressures and Digital Adoption
The study notes that standard retirement planning conversations must shift to address broader financial wellness concerns. More than half of government employees (52%) cite rising everyday expenses as a direct barrier to saving more for retirement, while just under one-third identify insufficient income as their primary challenge—a significantly higher proportion than observed in the private sector.
To overcome these headwinds, public workers are increasingly turning to technology. Nearly three-quarters of government employees (74%) report strong interest in digital retirement tools that allow them to view pension records and defined-contribution savings within a unified dashboard. Furthermore, nearly three-quarters trust AI tools to help them build an operational budget, and more than two-thirds trust AI to draft a foundational financial plan.
However, trust drops sharply regarding complex asset placement, and older demographics remain heavily hesitant to rely on artificial intelligence for wealth advice. The data points to a major opportunity for public employers to deliver unified digital tools while preserving access to human advisors to ensure workers can successfully coordinate pensions, savings, and Social Security.
The full benchmark report, including behavioral data matrices, pension tier communication guides, and employee engagement toolkits, is live and available for download. Government benefits administrators, public sector HR directors, and financial advisors can access the complete study by visiting Voya’s official digital research intelligence portal.
