Despite a boost in interest from retirement plan participants, lifetime income solutions haven’t seen much adoption in past years. That could all change in 2026, predicts the Institutional Retirement Income Council (IRIC).
The IRIC, a nonprofit think tank in New York, this week released its 2026 forecast of major trends that will shape the retirement planning industry. It predicted trends from broader adoption of in-plan retirement income solutions to expanded accessibility of workplace plans.
“2026 will mark a significant period when plan sponsors move from exploration to execution,” said Kevin Crain, the executive director of the 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.”
According to the report, in 2025, the retirement industry continued to “lay the groundwork” for in-plan retirement income by expanding selections of hybrid target-date funds (TDFs), annuity marketplaces, systematic withdrawal programs, managed accounts with built-in income features, and middleware integrations.
These rollouts could lead to greater adoption by plan sponsors in 2026, notes the IRIC, even if a common challenge among plan sponsors and professionals is implementing widespread plan adoption past pilot programs.
Thus, the IRIC predicts that retirement industry professionals, including consultants and advisors, will incorporate standardized fiduciary evaluation frameworks to simplify adoption and help sponsors assess and compare options.
Improving participant experiences
The IRIC also forecasts improvements in the participant experience with new interactions and transactions for in-plan retirement income options.
According to the organization, “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,” with the goal of “ensuring participants can understand how their plan balance converts to income, compare income options, and make informed decisions in real-time.”
Others will prioritize financial wellness programs and focus on pre-retiree education and income planning. This includes offering features like artificial intelligence (AI)-enabled personalization of retirement income projections and spending estimates; education on Social Security and Medicare elections; retirement paycheck modeling to help participants visualize income sources; and tax and budget withdrawal planning tools.
Small businesses and new employers will specifically focus on providing retirement savings plans to participants thanks to key catalysts in past years, including:
• 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
The IRIC predicts these developments could close the current retirement plan coverage gap, and especially for independent and small business workers.
‘Pivotal’ regulatory progress
The IRIC expects 2026 to define regulation and policy trends for years to come, as lawmakers consider expanding usage of alternative investments in defined contribution (DC) plans due to President Donald Trump’s August executive order.
The organization also forecasts possible fiduciary relief and new safe harbors for plan sponsors adding in-plan retirement income solutions as a result of potential regulatory reforms.