BlackRock Trends Report Points to More Retirement Income, Participant Communication

Many aspects of a pension plan are now being integrated into 401(k) plans to combat longevity risks and build retirement readiness, according to BlackRock Inc.’s inaugural “Retirement Trends Report.”

Analyzing both internal and external data, BlackRock found that while the retirement landscape has shifted away from the common use of pensions, defined contribution plan participants are now looking to prioritize guaranteed income, turning their plans into individualized “pensions.”

“Many of the tools that are available in our pension plans are needed in our 401(k) plans to drive better retirement outcomes,” says Nick Nefouse, the report’s author and BlackRock’s global head of retirement solutions.  

Additional trends included the need for better participant engagement, which could happen as advisers better equip themselves with effective communication tools for plan sponsors.

The Individualized Pension

The first of the five trends BlackRock noted for 2026 is the rise of the individualized pension. Roughly 80% of workers have access to DC plans, compared with 25% covered by a defined benefit plan, according to the report, quoting 2022 data from the Federal Reserve Bank of St. Louis.

With the rise of DC plans has come the challenge of what the report calls “turning saving into reliable spending.” With the older-than-80 population expected to triple by 2050, DC plan participants face increasing risk that their accumulated balances will not last through the decades of retirement.

Sponsor’s focus has shifted from individual fund selection to how the entire portfolio functions for participants and its ability to grow savings, manage risks across market cycles and sustain spending throughout retirement.

Another pension-like trait is a focus on income as a core portfolio function. As retirees adjust to spending, rather than saving, during retirement, guaranteed income is becoming increasingly important to participants and sponsors.

“This isn’t active or passive, private markets or public markets, guaranteed income or not guaranteed income,” Nefouse says. “Let’s focus on the objective, which is retirement outcomes.”

Among participants in BlackRock’s 2025 Read on Retirement Survey, 93% of BlackRock’s survey participants reported interest in owning a product specifically designed to generate income. All surveyed plan sponsors said they felt responsible for helping participants generate and manage retirement income.

Participant Engagement, Plan Access

Another trend among DC plans is a greater need for clear communication and participant engagement that can simplify complex topics.

“Take a target-date fund. These are very complex portfolios, but the way that we’ve talked about them is very simple: They’re low cost, they’re diversified, and they’re professionally managed,” Nefouse says. “What we found through a lot of research is: Because we’ve taken away the relationship with the investment from the individual, when they get to the point of retirement, they don’t really know what to do.”

According to the report, as participants continue to seek guidance, sponsors respond by meeting participants with a more tailored engagement, including frequent participant check-ins, smarter digital tools and education.

BlackRock also noted growth in the small-plan market. The micro-plan market is projected to expand by 67% by 2030, reaching more than 1 million plans. The growth is driven mainly by a significant coverage gap: 72% of small business owners currently do not offer a 401(k) plan.

Wealth Convergence, Policy Changes

BlackRock’s final two trends were the convergence of wealth and retirement planning, and how policy and regulatory progress are increasingly becoming the foundation of the DC ecosystem. As the lines between wealth and retirement blur, retirement planning is becoming a gateway to a broader financial planning relationship.

The SECURE 2.0 Act of 2022 is continuously reshaping DC plan design, whether by lowering barriers to participation or improving how workers save once enrolled, according to the report.

While Nefouse does not mention the impacts of the regulatory landscape, he adds that Trump accounts, which do not allow withdrawals before an account owner’s 18th birthday, will show retirement savers the power of building interest.

“One of the problems with 401(k)s is what we describe as ‘leakage,’ Nefouse says. “People take money out for emergency savings. They take money out on loans, they take money out for all sorts of different reasons. In other markets around the world, you can’t do that [as easily]. What the Trump Accounts provide is this early savings and this early compounding and its access to the U.S. capital markets.”

BlackRock internally adopted Trump Accounts for its internal employees in December 2025, pledging to make contributions once the accounts launch in July.