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Retirement

2026 Retirement industry outlook

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Navigating the year's most critical retirement industry trends

The U.S. retirement landscape continues to evolve, and we expect 2026 to mark another major turning point. Despite volatility in equity markets throughout 2025, retirement assets continued to grow, with total U.S. retirement assets hitting $45.8T at 30 June 2025, up from $42.1T the prior June. More people than ever have access to defined contribution plans (DC).1 In 2026, we expect retirement industry trends to accelerate across four main areas: lifetime income, private markets assets in DC plans, participant engagement and new technologies, and legislation.

Explore the 4 key themes for 2026
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Lifetime income
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Lifetime income
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2024 bureau of labor statistics comparison of percentage of workers with access to defined contribution vs defined benefits from 2010 to 2023

Theme 1

Lifetime income: the critical mass of adoption

Lifetime income within DC plans has been growing rapidly as both a concept and a practical solution over the last few years, and we believe 2026 will mark a major watershed year for guaranteed income within 401(k) plans.

Interested in reading the full 2026 Retirement industry outlook?

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Private markets assets in DC plans
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Private markets assets in DC plans
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Defined contribution allocations to private markets by U.S. clients from 2023 as cited by Cerulli Associates 2025

Theme 2

Private market assets in retirement plans: still an early conversation

The potential for private market investments within retirement assets generated substantial buzz in 2025. While there remains uncertainty, the general environment supports their use within professionally managed portfolios, such as target date funds.

Interested in reading the full 2026 Retirement industry outlook?

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Participant engagement and new technologies
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Participant engagement and new technologies
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2025 study by Empower on which financial decisions people may be comfortable using AI for Retirement planning in second place at 43%

Theme 3

Participant engagement: new technology will change the paradigm

Participant engagement continues to be a priority among plan sponsors and advisors as AI-integrated chatbots and tools grow rapidly. The participant experience needs to be simple and one designed to get the best information into the hands of participants.

Interested in reading the full 2026 Retirement industry outlook?

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Potential retirement legislation
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Potential retirement legislation
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Morningstar Direct. Data on the split of annual mutual fund & CIT target date assets in 403(b) plans, as of 31 Dec 2024

Theme 4

Potential legislation: the unknown unknowns

Closing the coverage gap remains a priority in 2026, and we hope to see regulatory or legislative steps to help get more people into retirement plans. We also see a focus on qualified payout options, participant education, improving default investments and liquidity provisions.

Interested in reading the full 2026 Retirement industry outlook?

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Looking ahead

We believe that the retirement industry in 2026 will be marked by steady progress rather than dramatic disruption. Lifetime income solutions will move from being an innovation to the mainstream, private markets will begin their gradual integration into DC plans, technology will enhance but not replace human advisors, and incremental legislative progress will continue expanding coverage. Given these market and regulatory dynamics, we believe plan sponsors who begin preparing now — evaluating new product options, understanding emerging technologies and staying informed on regulatory developments — will be best positioned to improve outcomes for their participants.

Download the full PDF to read more

Endnotes

Sources

 

1ICI. 18 Sep 2025.

Any guarantees are backed by the claims-paying ability of the issuing company. Before investing, carefully consider fund investment objectives, risks, charges and expenses. For this and other information that should be read carefully, please request a prospectus or summary prospectus from your financial professional or Nuveen at 800.257.8787 or visit nuveen.com. This material is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy, sell or hold a security or investment strategy and is not provided in a fiduciary capacity. The information provided does not take into account the specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on an investor’s objectives and circumstances and in consultation with their financial advisors. Financial professionals should independently evaluate the risks associated with products or services and exercise independent judgment with respect to their clients.

Important information on risk

Past performance is no guarantee of future results. All investments carry a certain degree of risk, including the possible loss of principal, and there is no assurance that an investment will provide positive performance over any period of time. Certain products and services may not be available to all entities or persons. There is no guarantee that investment objectives will be achieved. See the applicable product literature for details.

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