A new report from The Institutional Retirement Income Council (IRIC) says 2026 will be a pivotal year for the defined contribution industry transitioning from increasing interest in retirement income innovation to broader adoption of in-plan retirement income solutions.
“2026 will mark a significant period when plan sponsors move from exploration to execution,” said Kevin Crain, Executive Director of IRIC. “Over the past several years, plan sponsors and recordkeepers have been assessing a rapidly expanding inventory of in-plan income solutions. In 2026, that interest will translate into scalable adoption, with employers, consultants, and providers aligning around the shared goal of helping employees turn savings into lifetime income.”
The major industry trends IRIC has identified for 2026:
1. From interest to adoption: The pivot point for plan sponsors
Through 2025, the retirement industry continued to lay the groundwork for in-plan retirement income: an expanding selection of hybrid Target Date Funds, annuity marketplaces, systematic withdrawal programs, managed accounts with built-in income features, and middleware integrations.
In 2026, the focus shifts from creation to broader adoption by plan sponsors. Consultants and advisors will implement standardized fiduciary evaluation frameworks, making it easier for plan sponsor committees to assess, compare, and adopt retirement income options.
2. The next frontier: Enhancing the participant experience
2026 will be defined by improvements in the participant experience for interacting with and transacting in-plan retirement income options.
Recordkeepers, middleware technology firms, and income solution providers will continue collaborating to develop more seamlessly integrated and intuitive user interfaces that allow participants to evaluate, select, and manage income options directly within their DC plan platforms.
3. Financial wellness reimagined: Empowering the pre-retiree
2026 will also see a major growth in financial wellness programs focusing on pre-retiree education and income planning.
Employers will increasingly take on the responsibility of preparing older workers for retirement by offering comprehensive pre-retirement programs that include:
- AI-enabled personalization of retirement income projections and spending estimates
- Education on Social Security and Medicare elections
- Retirement paycheck modeling that helps participants visualize income from multiple asset sources
- Tax- and budget-aware withdrawal planning tools
Related: Bipartisan bill reintroduced to simplify 401(k) rollovers to annuities
4. Expanding access: The growth of new workplace plans
In 2026, substantial progress is expected to continue in expanding access to workplace retirement savings, especially among small businesses and emerging employers.
Key catalysts include:
- Fintech-powered recordkeeping platforms that bring low-cost scalability to small employers
- Positive legislative and regulatory incentives were legislated in the Secure Acts
- The continued growth of MEPs and PEPs that streamline administration and fiduciary oversight
- Increased awareness driven by state auto-IRA programs, prompting small employers to adopt their own qualified plans, and for those that do not, enrolling employees in state-sponsored auto-IRA programs
5. Policy and regulatory evolution: Income, alternatives, and fiduciary relief
Policymakers are considering actions that would expand the use of alternative investments within DC plans and clarify how such investments, including private credit, private real estate, and infrastructure, can complement traditional allocations, likely as part of investment strategies in broader managed portfolios.
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