Don’t expect much progress in the way of retirement reform legislation in 2026, but there could be plenty of movement this year on the retirement regulation front, according to comments made today as part of T. Rowe Price’s annual U.S. Retirement Market Outlook press briefing.
The briefing offered research-based insights on major themes expected to shape the retirement landscape in 2026. A panel of T. Rowe Price experts explored how these trends may influence decision-making across the retirement industry and for retirement savers in the year ahead.
“The U.S. retirement system is at a pivotal moment—shaped by evolving regulation, rapid technological change, and a renewed focus on how to best meet the diverse needs of plan participants,” said Michael Davis, head of global retirement strategy at T. Rowe Price and host of the panel.
Speaking on the topic of retirement public policy, Aliya Robinson, director of congressional affairs at T. Rowe Price, said she doesn’t expect much progress this year in terms of retirement legislation, but there could be plenty in the way of regulation—or perhaps more accurately, deregulation in line with the DOL under the Trump administration’s expressed preference for reducing compliance burdens on employers.
One reason legislation may not advance significantly is a short 2026 runway due to midterm elections. She noted there is only about a six-month window for legislative activity. While many have expressed optimism about collective investment trusts (CITs) finally being allowed in 403(b) plans after the House passed the INVEST Act in December, Robinson noted passage depends on Senate action, which is far from a sure thing.
“We are not sure whether they will take up the House package or whether they will have their own package,” she said. “And if they do a different package, that will clearly take more time and additional negotiations with the House.”
One area that she expects plenty of activity is guidance regarding President Trump’s Executive Order, “Democratizing Access to Alternative Assets for 401(k) Investors,” which directed the Department of Labor to reevaluate previous guidance around alternative asset investments in retirement plans and to clarify the government’s position on the fiduciary responsibilities associated with offering asset allocation funds that include alternative holdings.
On Jan. 13, the Department of Labor sent a proposed rule titled, “Fiduciary Duties in Selecting Designated Investment Alternatives” for review to the White House Office of Management and Budget. While OMB typically has up to 90 days to review proposed rules, it is widely expected the review will be expedited to allow the guidance to be issued no later than next Tuesday, Feb. 3, as the Aug. 7, 2025 Executive Order directed the DOL to issue guidance within 180 days.
Once the proposed rule is published, she expects a somewhat expedited comment period of 30 or 60 days, increasing the likelihood of a final rule being published in 2026.
“We think it’s possible that there could be a final rule on this provision by the end of the year, and that would allow for implementation beginning next year,” Robinson said. “This is definitely on a fast track.”
ERISA litigation reform
Robinson went on to add that one thing she does not expect to be on the fast track this year is ERISA litigation reform, despite acknowledging there has been significant activity in this area as well.
She mentioned the ERISA Litigation Reform Act, introduced last November by Rep. Randy Fine (R-FL), that would support pleading standards for lawsuits targeting ERISA plans.
Robinson noted that it addresses the controversial Cornell v. Cunningham Supreme Court case, which found that plaintiffs only have to allege that there was a prohibited transaction and not that there was an exemption or even a failure to apply the exemption; and that the discovery process will not take place until after the motion to dismiss is ruled upon.
“We think that these two pieces will be significant in really deterring suits that are only driving to settlement and not trying to improve the retirement system,” Robinson said. “We do not expect that this legislation will pass quickly or move quickly—this is something that requires significant education.”
Robinson went on to add that more movement in this regulatory space came in the form of the Department of Labor filing several amicus briefs lately that are supporting plan sponsors rather than plaintiffs.
“This is a shift not just even from the previous administration but really from where the Department of Labor has been for a long time in only supporting plaintiffs,” Robinson said. “We think this is a positive development and we look forward to the Department of Labor moving forward in this space, as we continue … to drive down litigation that is not helping the retirement system or plan participants.”
During Q&A session after the main presentation, 401(k) Specialist asked Robinson whether she thought the bipartisan “Retirement Savings for Americans Act,” which was reintroduced in Congress last year for the third time after its initial introduction in 2022, would see any movement in 2026.
“I think that legislation is really meant to start a discussion and to bring up the issues with coverage,” Robinson said. “I don’t think we’ll see any action on it this year—definitely not passage, but it continues to be part of the conversation that we are having about retirement coverage, and that Congress continues to focus on.”
Additional topics covered
Wednesday’s media briefing also featured commentary from Jessica Sclafani, global retirement strategist; Brandon Shea, defined contribution strategist; and Rachel Weker, retirement strategist.
Sclafani addressed the topic of building more resilient retirement portfolio solutions, and how new frameworks for integrating private markets into retirement plans are reshaping diversification and risk management.
“Any private asset allocation must earn its place in the portfolio by offering unique net-of-fee investment benefits. This is a crucial threshold as asset managers and plan sponsors consider incorporating private assets into multi-asset products like target date solutions.”
T. Rowe Price’s Jessica Sclafani
“It’s important to note that private market assets have grown significantly in the past 15 years—nearly three times as fast as public assets,” Sclafani said. “Today, private assets represent a larger portion of the total investable universe. We believe a bigger opportunity set can potentially offer better outcomes.”
She added that T. Rowe Price research suggests that professionally managed multi-asset solutions are the right chassis for offering DC plan participants exposure to private assets—with a caveat.
“Any private asset allocation must earn its place in the portfolio by offering unique net-of-fee investment benefits. This is a crucial threshold as asset managers and plan sponsors consider incorporating private assets into multi-asset products like target date solutions,” she said.
Shea discussed the accelerating impact of Artificial Intelligence, saying that AI and technology innovation are transforming retirement services, driving efficiencies, and improving participant engagement. The potential impact is substantial, as the landscape shifts from possibility to profitability.
“When you look at retirement services, we’re entering a new era where AI can materially improve how advice is delivered, how plans are run, and how participants engage,” Shea said. He added that AI is not about replacing people but about profitability and measurable value. “It’s really equipping them with better tools to serve participants and sponsors.”
The point is not cost-cutting for its own sake; it’s what efficiency buys: more time for advice, faster service, and better outcomes.
“We’re seeing AI shift from what’s possible to what’s practical,” Shea said.
Weker addressed the demand for personalized advice solutions. As financial priorities expand and stress increases for participants, the need for individualized guidance—whether human or digital—has become central to confident retirement decision-making.
“In 2026, we are really seeing advice and personalization becoming foundational expectations—not optional enhancements,” Weker said.
She said this is happening for three main reasons:
• Retirement plan participants are going to need help because they are facing increasingly complicated financial backdrops, which is driving more complex decision-making.
• Technology is enabling delivery of personalization at scale, and it aligns with the way that participants are actively seeking out advice.
• There is an increasing appetite across the industry to deliver scalable advice, especially for participants as they near retirement.
A link to T. Rowe Price’s complete 2026 U.S. Retirement Market Outlook can be accessed at this link.
SEE ALSO:
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