As defined contribution plans continue to evolve amid regulatory developments, participant expectations, and market uncertainty, recent surveys from industry leaders highlight several key themes shaping today’s DC landscape. Research from Callan Institute and MFS® points to growing emphasis on governance, fee oversight, retirement income solutions, and improving participant engagement. The latest surveys point to continued momentum behind personalization and financial wellness initiatives to enhance participant readiness in an increasingly complex retirement environment.
The following summaries highlight the key findings and strategic trends identified by each organization, offering perspective on where the defined contribution market may be headed next.
Governance, Fiduciary Oversight & Litigation Risk
What is Keeping Plan Sponsors Up at Night?
Source: 2026 MFS® DC Plan Sponsor Survey
Plan governance and processes returned as the top focus for plan sponsors in Callan’s recent survey. An effective governance strategy and adherence of a prudent process help plan sponsors meet their fiduciary duties, adhere to regulatory requirements, and reduces fiduciary liability.
Key survey findings:
- 66% of sponsors completed fiduciary training for committee members
- 70% of sponsors reviewed recordkeeping fees within the past year
- 96% of those sponsors benchmarked fees against peers
- 65% evaluated forfeiture account usage
MFS highlighted continued plan sponsor concerns surrounding cybersecurity, administrative documentation, fee reviews, and fiduciary process documentation. The top concerns also vary by plan size. While the changing regulatory landscape was the primary concern across all plan sizes, smaller plans had a greater concern over participation rates and administrative difficulties. Mid-size plans were most concerned about fee pressures and for the large/mega size plans, litigation was the top concern.
Participant Readiness & Retirement Confidence
Participant confidence is improving but the gap remains. According to the MFS Survey, only 33% of plan sponsors feel confident that their participants will be able to retire at their desired age. Many workers do not feel adequately prepared for retirement.
Source: 2026 MFS® DC Plan Sponsor Survey
Participants expressed that competing financial priorities and obligations were preventing them from saving enough for retirement. As we have seen in recent years, the competing financial pressures continue to have a drastic effect on retirement savings.
Investment Menu Trends & Innovation
Plan sponsors continue to have a heavy focus on target date and target risk options. According to Callan, more than ¾ of respondents took at least one action surrounding their “easy option” offering in 2025. These actions included the suitability of the glidepath, evaluating underlying funds, considering participant demographics and evaluating private markets and guaranteed income features.
Key survey findings:
- 14% of sponsors evaluated private markets in target date/target risk option
- Adoption of private markets remains cautious
- Only 2% of sponsors added lifetime income features inside of target date funds
- Active and passive implementation remains mixed
SECURE 2.0 Adoption & Plan Design Changes
As SECURE 2.0 implementation winds down, it has nonetheless presented significant challenges for plan sponsors and recordkeepers. Some provisions of SECURE 2.0 were mandatory, while others were optional. Here are some key survey results reviewing which provisions were most popular among sponsors.
- 90% implemented increased catch-up contributions for ages 60-63
- 60% adopted self-certification for hardship withdrawals
- Nearly 60% chose not to implement in-plan emergency savings accounts
- Only 16% showed interest in student loan matching provisions
Source: Callan Institute 2026 Defined Contribution Trends Survey
Your organization’s retirement plan is complex, full of ever-changing details, regulations, and oversight. We have built our reputation on understanding those complexities and helping plan sponsors build strong retirement plans. If you have any questions about this topic, please contact our team.
Sources:
Callan Institute 2026 Defined Contribution Trends Survey
2026 MFS® DC Plan Sponsor Survey