Product Development and Increased Engagement and Demand

The IRIC expects industry groups, including investment firms, insurance providers, plan recordkeepers, consultants, and middleware technology firms to design new retirement income solutions and improve ways to utilize the features.

Customized in-plan retirement income options, including hybrid target-date funds and managed accounts, will continue to gain momentum in 2025, the organization predicts. The group also expects hybrid investments to offer flexible approaches, whether that’s an annuity retirement income offering or a retirement paycheck systematic withdrawal option. 

IRIC predicts greater integration in retirement income planning, such as combining DC and Social Security retirement income to create a product design that “bridges” DC plan income decisions with Social Security election decisions.

At the same time, the organization anticipates seeing enhanced levels of participant engagement and demand, especially for tools that use artificial intelligence (AI) capabilities.

 “This growing demand will drive the retirement services industry and plan sponsors to enhance retirement income planning tools and personalize retirement income projections for DC plans and other retirement income pillars,” the IRIC writes. “The tools will include using AI to engage participants in a more interactive planning experience. Enhancing planning tools will better educate participants about retirement income, increasing their comfort in utilizing the in-plan retirement income options.”

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