IRIC Foresees Broader In-Plan Retirement Income Adoption in 2026

Next year will mark a transition to a broader adoption of in-plan retirement income solutions from increased interest in retirement income innovation, according to the Institutional Retirement Income Council’s forecast of major industry trends, released Monday.

According to the IRIC’s outlook, in 2025, the retirement industry continued to “lay the groundwork” for in-plan retirement income through an expanding selection of target-date funds, annuity marketplaces, systematic withdrawal programs, managed accounts with built-in income features and middleware integrations. In 2026, however, consultants and advisers will implement standardized fiduciary evaluation frameworks to help plan sponsor committees assess, compare and adopt the features.

“Pilot programs have largely served their purpose in 2024–2025, evidenced by a mature inventory of in-plan solutions, broad-based recordkeeper adoption of in-plan solutions and evolution of how plan sponsors, consultants and advisers can assess the expanding inventory of in-plan income solutions,” says Kevin Crain, executive director of the IRIC. “2026 is less about pilots and more about broad-based adoption.”

Recordkeepers, middleware technology firms and income solution providers will continue enhancing on the participant experience front, according to the IRIC’s forecast. Participants will have access to more “seamlessly integrated and intuitive” user interfaces that allow them to evaluate, select and manage their income options directly on their defined contribution plan platforms.

Pre-Retiree Preparedness

Financial wellness programs focused on pre-retiree education and income planning also will grow in 2026, the IRIC stated in its outlook. Employers will offer comprehensive pre-retirement income education programs that include:

• Artificial intelligence-enabled personalization of retirement income projections and spending estimates;
• Education on Social Security and Medicare elections;
• Retirement paycheck modeling that compiles asset sources; and
• Tax- and budget-aware withdrawal planning tools.

“AI will become a key driver of personalization, enabling plan participants to simulate various income and longevity scenarios,” the group’s prediction paper stated. “These enhanced pre-retirement programs, often provided through digital and virtual coaching, will help make the transition to retirement more predictable, confident and financially secure.”

Crain says that providing access to pre-retirement programs well in advance of the expected retirement age allows participants to evaluate and plan thoroughly for their post-retirement life.

Expanded Workplace Coverage

The IRIC’s forecast stated that the organization expects an expansion of workplace retirement savings—especially for small business workers—to continue into the new year.

Catalysts driving the growth of new workplace plans include:

• Fintech-powered recordkeeping platforms that bring low-cost scalability to small businesses;
• State automatic individual retirement account initiatives that prompt small employers to either adopt their own qualified plans or enroll their employees in the state-mandated program;
• Small business incentives included in the SECURE 2.0 Act of 2022, such as tax credits that cover three years’ worth of plan startup costs; and
• The continued growth of multiple employer plans and pooled employer plans, which streamline administration and fiduciary oversight and offer employers an option that does not involve the business running a retirement plan.

A ‘Pivotal’ Year for Regulation

The IRIC predicted that 2026 should be a “pivotal year” for regulatory progress, as well. Following on the heels of President Donald Trump’s August 7 executive order in support of increasing access to alternative investments in 401(k) plans, policymakers are considering actions that would expand the use of the investments including private credit, private real estate and infrastructure, along with how they can complement traditional assets. The organization’s report also anticipated that regulatory reforms could expand fiduciary relief and create new safe harbors for plan sponsors implementing in-plan retirement income solutions—especially those with guaranteed income features.