Despite experiencing low adoption, employers are signaling growing support of lifetime income tools.
The 2026 Lifetime Income Poll from MetLife found that 90% of defined contribution (DC) plan sponsors believe the core purpose of a DC plan “should be to serve as an income source during retirement.” Another 59% think 401(k) plans should offer lifetime income at retirement, and 54% support defaulting a portion of savings into guaranteed income.
While an increase in plan adoption of lifetime income tools won’t happen overnight, Metlife’s head of Institutional Income Annuities Roberta Rafaloff says the findings show a notable shift among plan sponsors that could drive future implementation. “Sponsors increasingly recognize the gap between saving and spending. As platforms and solutions evolve, and sponsors gain confidence in offering these solutions, we expect adoption to increase,” Rafaloff said to 401(k) Specialist.
Retirement Income in SECURE 3.0
The research also signaled broad support for policy that would promote annuity options. As talks of a potential SECURE 3.0 package intensify in the industry, 66% say they would support a new legislation that includes retirement income backing, with this rising to 75% among those “extremely or very knowledgeable” about past efforts by policymakers and regulators to strengthen retirement security. Nearly six in 10 (69%) of plan sponsors would also back a rule that required their DC plan to offer lifetime income as a distribution for retiring plan participants.
A large number of plan sponsors (79%) would also favor a limited tax incentive for participants who annuitize all or part of their savings. This percentage increases to 89% among those who already offer guaranteed lifetime income to their plan participants.
MetLife’s research shows growing support for the idea that encouraging workers to consider annuity options represents sound public policy, with 82% agreeing, up from 62% in 2016.
“Sponsors increasingly view retirement income as a core workplace outcome, and many see thoughtful policy as a way to provide consistency, clarity and scale in helping participants turn savings into income,” Rafaloff added.
Simpler options
Plan sponsors in MetLife’s survey acknowledged challenges in understanding several lifetime income options, such as the Guaranteed Living Withdrawal Benefits (GLWBs) and Guaranteed Minimum Withdrawal Benefits (GMWB). They note that such options could be difficult for participants to learn due to its convoluted material.
Rather, MetLife recommends plan sponsors explore immediate income annuities and qualifying longevity annuity contracts as these products can be easier for participants to understand.
The MetLife 2026 Lifetime Income Poll includes responses from 242 DC plan sponsors. Among the respondents, 66% reported DC plan assets of $250 million or more, while 12% hold over $1 billion in assets.