Study: Plan sponsors and participants agree there should be a choice of DC income solutions
Choices may need to include an out of plan solution
WASHINGTON, DC (January 22, 2026) – Majorities of plan sponsors and plan participants suggest retirement plans should include two or three income choices for retirement income.
This is one of the most consistent findings of Greenwald Research’s just-released 2025 In-Plan Insights Program. The 5th annual program explores the changing landscape of retirement income options in defined contribution plans from the perspectives of plan participants, plan sponsors, and plan advisors through online surveys, in-depth interviews, and focus groups.
“I’m starting to feel like a broken record, but the industry needs to know and accept that, despite the challenges this presents, sponsors and participants want a retirement tier that includes choices,” said Greenwald’s CEO Lisa Greenwald. “The mix of preferred options appears to include both guaranteed lifetime income (GLI) and non-insured solutions. It may also include more personalized and less personalized solutions, or embedding income in plan investment options as well as out of plan or ‘via’ plan solutions.”
Indeed, two-thirds of participants and three-quarters of plan sponsors feel there should be two or three retirement income options available in the plan. These numbers have been consistent over five years. While 4 in 5 participants suggest automatic enrollment to an option with an income feature is appealing, most prefer a middle-ground between a fully automatic versus completely manual retirement income experience. Choosing from among a variety of “paths to income,” only 1 in 3 participants selected a fully automatic option. Most select a path that includes at least one proactive decision.
There are also signs that some of these choices may include solutions outside of the plan or “via” plan. Nearly 9 in 10 participants (88%) think that employers should offer income options in their plans and agree that they would consider contributing to one if it was offered. Six in 10 report that they would be more likely to keep their money in plan if an income option was offered. However, nearly two-thirds want income options offered without having to leave money in their employer’s plan, and 4 in 10 want to roll assets out because they do not want their money associated with their employer once retired.
Sponsors seem to have reservations about managing retiree assets as well. Only one-third of sponsors prefer participants keep their money in the plan after they retire, while 4 in 10 say they have no preference. However, 3 in 4 (72%) agree that they prefer not to be managing investments for retired plan participants. This could be due to a lack of resources, as only about half feel they have the resources available to support retirees.
Other key findings of the latest In-Plan Insights Program include:
- Participants see value in guaranteed lifetime income (GLI), with 8 in 10 agreeing that having GLI would help them feel secure in times of market volatility or loss or would make them feel more comfortable retiring “on time.” Three-quarters at least somewhat agree that these retirement income solutions seem “right for me.”
- Liquidity and access remain important, as participants are divided on their preference for GLI with no ability to access the account or no GLI but full access. However, nearly 9 in 10 find the statement “It may be worth committing or locking in some of your money to produce guaranteed lifetime income” compelling.
- Sponsors have concerns about offering retirement income solutions: complexity (64%), fees (62%), and additional administrative burden (55%) top the list. Rounding out the top 5, 48% each are concerned about these options having lower performance or wanting to ensure participants have enough choices.
- Sponsors also identified methods to increase their comfort with adding retirement income options to their plans. Seeing a proven performance history (51%) and knowing that participants can speak with a professional to help them decide (49%) is cited most. More than a third cite portability for participants (41%), being able to hand-off “ownership” of the retiree to reduce administrative burden (37%), or being able to offer a choice or suite of income options (36%) as methods to increase comfort.
About the Research
Greenwald’s In-Plan Insights Program is designed to explore the changing landscape of retirement income options in defined contribution plans. The 2025 sponsor survey included 504 plan sponsors with 50 employees and up. The participant survey included 1,000 plan participants working full-time and ages 30 to 70. Both fielded in Fall 2025.
The 2025 In-Plan Insights Program reports are available for purchase. Contact Greenwald Research at info@greenwaldresearch.com to learn more.
About Greenwald Research
Greenwald Research is a consultative partner to health and wealth leaders that leverages industry expertise, access to experts, and a custom, collaborative approach to produce trusted insights and meaningful connections that drive understanding and inform strategic action. For more information, please visit www.greenwaldresearch.com.
Contact:
Herb Perone
media@greenwaldresearch.com
