Is plan design entering a new phase of integration and personalization?
Guest Contributor: Fidelity Workplace Thought Leadership
Background:
Fidelity’s latest Workplace Outlook Report: 11 Trends Shaping the Future of Plan Design highlights a clear set of priorities amid growing complexity. Leveraging data from more than 28,000 defined contribution plans and 25 million participants, the findings show that stronger outcomes are driven first by effective behavioral foundations such as automation, well-aligned defaults, and thoughtful investment design, and then strengthened through deeper engagement and personalized guidance. At the same time, rising liquidity pressures and regulatory change are expanding how participants use their plans, elevating the need to balance short-term flexibility with long-term retirement discipline.
Collectively, the 11 trends signal a shift from incremental feature enhancements to integrated plan design. Employers that intentionally connect plan architecture, personalization, and benefits integration are better positioned to influence behavior, sustain savings momentum, and support retirement confidence across the full employee lifecycle.
Findings:
- From participation to engagement Automatic features have boosted participation, but sponsors are now focused on deeper engagement to improve savings behaviors and long-term outcomes.
- Employees are saving more, and smarter Contribution rates are near record highs, with nearly eight in 10 participants contributing at or above their employer match.
- Retirement plans as short-term liquidity tools Loans and hardship withdrawals continue to rise, underscoring the tension between immediate financial needs and long-term saving.
- SECURE 2.0 is reshaping access to savings New withdrawal provisions are increasing transaction volume without materially increasing overall plan leakage to date.
- Demand for retirement income is accelerating With one-quarter of the workforce nearing retirement, interest in in-plan income and decumulation solutions is rising.
- Investment menus are evolving After years of simplification, some 401(k) lineups are changing or expanding to address inflation, volatility, and personalization needs.
- Target date funds continue to dominate TDFs now serve as the default investment for most participants and are continuing to evolve with blended, lower-cost, and other solutions.
- Collective investment trusts gain momentum Economies of scale and lower fees are driving broader CIT adoption across plan sizes and asset classes.
- Managed accounts move mainstream Nearly half of plans now offer managed accounts, with participants valuing personalization, flexibility, and holistic advice.
- Defined benefit sponsors rethink delivery models Improved funding levels are prompting more DB sponsors to consolidate providers and adopt OCIO models to help manage complexity and share fiduciary risk.
- Integrated benefits drive better outcomes Participants with access to multiple workplace benefits show higher savings rates, greater engagement, and stronger overall financial health.
Bottom Line:
The future of plan design is not defined by individual features, but by how effectively they work together. Leading sponsors are moving beyond a participation‑first mindset to orchestrate plans that balance automation with engagement, liquidity with long-term discipline, and accumulation with income confidence. By aligning defaults with real‑world behavior, expanding personalization, and integrating retirement income with the broader benefits ecosystem, sponsors can translate complexity into clearer outcomes for employees’ financial security and for organizational resilience.
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Insights shared by guest contributors are their own and do not represent the views of DCIIA or the RRC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
