Institutional Retirement Income Council Announces Retirement Industry Trends to Watch in 2026

NEW YORK, NY, UNITED STATES, December 1, 2025 /EINPresswire.com/ -- The Institutional Retirement Income Council (IRIC), a non-profit think tank, today released its 2026 forecast of major trends shaping retirement plans and retirement savings in the United States. The 2026 outlook indicates a pivotal year for the defined contribution (DC) 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, 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.

The industry’s common challenge and opportunity is to go beyond pilot programs to widespread plan adoption, ensuring meaningful participant access and measurable retirement income results.

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.

This evolution will focus on clarity, simplicity, and digital engagement, ensuring participants can understand how their plan balance converts to income, compare income options, and make informed decisions in real-time.

3. Financial Wellness Reimagined: Empowering the Pre-Retiree

2026 will see 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

AI will become a key driver of personalization, enabling plan participants to simulate various income and longevity scenarios. These enhanced pre-retirement programs will help make the transition to retirement more predictable, confident, and financially secure.

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

Together, these developments will expand the reach of the defined contribution system and help close the coverage gap, especially for gig-economy and small-business workers who have traditionally lacked access to formal retirement savings options.

5. Policy and Regulatory Evolution: Income, Alternatives, and Fiduciary Relief

2026 will be a pivotal year for regulatory progress. Policymakers are considering actions to expand the use of alternative investments within DC plans and clarify how such investments can complement traditional allocations, likely as part of investment strategies in broader managed portfolios.

At the same time, regulatory reforms might expand fiduciary relief and create new safe harbors for plan sponsors implementing in-plan retirement income solutions.

About the Institutional Retirement Income Council

The Institutional Retirement Income Council (IRIC) is a non-profit, membership-based organization of industry experts dedicated to advancing best practices, promoting policy awareness, and fostering the adoption of defined contribution in-plan retirement income solutions.

Ed Emerman
Eagle Public Relations
+1 609-240-2766
eemerman@eaglepr.com

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