Retirement Income Requires More Than Just Product

Participant adoption of retirement income solutions will depend on advice, education, and recordkeeper support

October 8, 2026, BOSTON—Improving the retirement income ecosystem for defined contribution (DC) plan participants will require more than investment product development alone. According to The Cerulli Report—U.S. Defined Contribution Distribution 2026, the industry must couple investment solutions with participant advice and planning, education for plan sponsors and intermediaries, and recordkeeper infrastructure that helps participants turn their savings into income.

Pre-retirees want retirement income strategies that balance flexibility, security, and guidance. Cerulli’s research shows nearly half of participants (46%) want the ability to withdraw money at any time, nearly 40% say they want a personalized, detailed, and actionable plan to follow in retirement, and 31% want the ability to change their investments. At the same time, 39% want a guaranteed monthly payment that continues after their savings run out. Together, these priorities underscore the need to combine income products with individualized planning and advice.

“Given the high degree of personalization that goes into developing and executing on a retirement income strategy, meeting the needs of all, or even most, participants with a single retirement income solution is challenging,” says Chris Bailey, director.

As a result, plan sponsors may need to offer participants a range of solutions rather than rely on a single product. DC industry consultants tell Cerulli the average retirement plan may need two or three different options on the plan menu to accommodate participants’ varied needs.

As more solutions become available, recordkeepers will need the infrastructure to support them and provide participants with the advice and guidance needed to use them effectively. Already, 70% of recordkeepers tell Cerulli that providing support for guaranteed income solutions and improving retiree distribution options are a priority for their organization.

“Most pre-retirees are uncomfortable making key retirement income decisions without an advisor’s help,” says Bailey. “As much as they want guaranteed income in retirement, pre-retirees also want a personalized, detailed plan they can follow in retirement,” he adds.

Ultimately, advice and planning will be crucial for any retirement income product. “Recordkeepers and plan advisors have an opportunity to help participants develop retirement plans to utilize these products effectively. Perhaps increased access to planning and advice will reduce the need for flexibility that intermediaries and participants seek,” he concludes.

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Headquartered in Boston, Cerulli Associates is an international research and consulting firm that provides financial institutions with guidance in strategic positioning and new business development. Our analysts blend industry knowledge, original research, and data analysis to bring perspective to current market conditions and forecasts for future developments.