5 Trends That Will Shape Retirement Plans in 2026

Employees want clarity and confidence as they plan for the future. Rising costs, new regulations, and rapid changes in the workplace are pushing retirement programs to evolve faster than ever before. Your role as a plan sponsor is no longer only about offering a plan. You need to help people understand their choices, build better habits, and prepare for retirement.

We asked a few IMA Retirement team members what retirement trends to watch for in 2026. Each trend comes from growing participant needs and new policy requirements. Together, they point to a year that rewards employers who act early and communicate clearly.

Rothification: A Critical Compliance Priority

“One of the most significant changes on the horizon is the Rothification mandate under SECURE 2.0. Beginning January 1, 2026, employees aged 50 or older who earned more than $150,000 in the prior year must make all catch-up contributions on a Roth (after-tax) basis. For plan sponsors, this means ensuring your plan offers a Roth option—or risk-prohibitive catch-up contributions for employees altogether. Beyond compliance, Rothification introduces operational challenges, including payroll coordination and participant education. Sponsors should start planning now: update plan documents, confirm record-keeping capabilities, and develop communication strategies to help participants understand the tax implications and long-term benefits of Roth contributions. Acting early will position your organization as proactive and prepared for this pivotal shift.” — Zach Hildebrand, CFP®, AIF®, CRPS®, Director of Client Services

Retirement Income

“When most people think about Retirement Planning, it’s always about the growth of assets to get to the point where one could retire comfortably and truly enjoy their retirement. We call this the “Accumulation Stage” of Retirement Planning. While this is a crucial component to retiring well, it’s not the only piece of the puzzle. Strategically withdrawing assets in retirement is just as important to ensure your hard-earned dollars stretch as far as you need them to, with the goal of enjoying the end of your working career. Retirement Income Vehicles are increasingly becoming a hot topic across recordkeepers, advisors, and plan sponsors focused on giving new retirees the options they need to retire comfortably and successfully. 2026 will likely contain rhetoric around retirement income vehicles built into retirement plans, whether that’s through suites of Target Date Funds, or through individual election of annuity products as an option for retirees taking distributions. There are many components to this still up in the air, but it is likely there will be significant discussion as we move forward in 2026.” — Ben Stein, CPFA®, AIF®, Director, Education & Engagement

Financial Coaching

“As economic uncertainty and rapid technological change reshape the workplace, employees increasingly value personalized financial guidance. Research shows that those with a financial plan report higher confidence and well-being, highlighting the growing demand for accessible, non-product-driven financial coaching. Importantly, financial planning looks different at every stage of life: early-career employees may need budgeting and debt strategies, mid-career professionals often focus on family planning and retirement savings, while those nearing retirement prioritize income distribution and tax efficiency. In 2026, expect this trend to accelerate as new platforms emerge that combine digital tools with human expertise to deliver tailored solutions.” — Matt Rice, CPWA®, CFP®, Director of Financial Planning

Gen Z and the Auto-Enrollment Advantage

“As the youngest generation in the workforce, Gen Z is showing a strong preference for simplicity and automation in financial decisions. Auto-enrollment aligns perfectly with their expectations for streamlined benefits and minimal friction. Rather than navigating complex enrollment processes, Gen Z values default options that help them start saving immediately—especially as many are balancing student debt and early career expenses. For plan sponsors, implementing auto-enrollment isn’t just about compliance; it’s about meeting the needs of a generation that prioritizes convenience, digital solutions, and proactive financial wellness.” — Zach Hildebrand, CFP®, AIF®, CRPS®, Director of Client Services

Automatic Escalation

“There has recently been a significant push, both from advisors and Congress alike, to encourage the utilization of automatic features in Retirement Plans with the main goal of growing employee retirement accounts faster. This has been a relatively recent transition as Pension Plans become increasingly rare, and it falls more and more on an individual to save for their own retirement. Automatic enrollment is one piece of the puzzle. Default deferral rates typically encourage someone to start saving, but don’t put that individual in the position they need to be once they reach retirement age. Automatic Escalation has been utilized to slowly increase employee deferrals over time, with the idea in mind that an employee could take no action at all, and still be in a positive spot once they reach their retirement age. The “auto” trends continue to be discussed, and will be pushed further in 2026 and beyond as an emphasis continues to be put on an employee’s ability to retire at their full retirement age.” — Ben Stein, CPFA®, AIF®, Director, Education & Engagement

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2026 will reward plan sponsors who make retirement planning clearer, easier, and more personal. Your employees want direction and support. They want to feel confident about their future. When you stay ahead of compliance shifts, automate smart defaults, and offer guidance that fits each stage of life, you help every employee move closer to financial security.