Background: In early 2025, the DCIIA Retirement Research Center (RRC) conducted in-depth interviews with 22 plan sponsors—representing over $108 billion in DC plan assets—to understand how decision-makers are thinking about retirement income solutions. These qualitative conversations revealed the real-world challenges, perceptions, and priorities shaping employer behavior.

Findings: Plan sponsors acknowledge the need to evolve DC plans from a savings vehicle to one that supports retirement spending. However, many have not yet developed formal decumulation strategies, and few have taken action to include retirement income solutions. Key barriers include:

Competing priorities: Limited internal resources as well as competing priorities remain a hurdle. Retirement income often takes a backseat to SECURE 2.0 (mandatory and optional) implementation, plan design changes, financial wellness solutions, and M&A activity.

Committee support: An internal champion is often needed to help navigate solutions and gain support across internal committees. This is challenging given varied experience and possible preconceptions or biases.

Evaluation complexity: Plan sponsors are confused by the complexity and variation across products and solutions and pointed to the lack of standard frameworks to compare costs, features, and risks. Many noted the significant

additional challenge of understanding insurance-based products—indicating it is much more complex than understanding investment options.

Fiduciary and legal concerns: Litigation fears and fiduciary implications loom large, as well as unclear guidance. This concern was particularly heightened around defaulting participants potentially paying for something that is not utilized.

Participant engagement and readiness: Low financial literacy and limited engagement make it difficult to introduce complex features. Employers remain concerned about communication, and the time and attention that such solutions may require—with many indicating that participant engagement is essential for retirement income solution success.

Consultant/advisor and recordkeeper dynamics: Consultant and recordkeeper support varies, and some sponsors hesitate to act without stronger external guidance. Recordkeeper integration and capabilities are also viewed as critical, given this is central to solution availability.

Comfort in numbers: A significant number of employers indicate interest, yet do not want to be first movers. Many want to learn from other employers, as well as wait for market maturity.

Bottom line: Plan sponsor interest in retirement income solutions is growing, signaling a measured shift from a savings-centric mindset toward greater support for income planning in retirement. While many employers are still early in their journey, there is an increased focus on better understanding solutions and opportunities. Organizational and fiduciary hurdles remain, but progress is underway. Continued adoption may hinge on peer momentum, education, and clearer frameworks for evaluation.

Building on these insights, the RRC is launching a quantitative study to assess the relative importance of adoption barriers across the broader plan sponsor community. The survey will be fielded in May 2025, with findings to be shared in the third quarter.

Read an executive summary of the research. Access to the full report and companion PowerPoint deck is available to DCIIA RRC and Plan Sponsor Institute (PSI) members.

There are no fees to join the PSI, which is for plan sponsors only. For more information on RRC or PSI membership, please contact info@dciia.org.