2026 Retirement Outlook

2026 marks the 20th anniversary of the Pension Protection Act (PPA), legislation that transformed defined benefit (DB) and defined contribution (DC) retirement plans in the United States. Over the past two decades, the PPA has profoundly shaped DC plan design, investment strategies, and participant outcomes, ushering in important innovations such as automatic enrollment features and qualified default investment alternatives (QDIAs). The law’s impact on DB plans, however, was less beneficial. While the PPA was intended to strengthen the DB system, its provisions — combined with unforeseen external economic changes — helped contribute to the decline of DB plans over the past 20 years.

Our 2026 Retirement Outlook explores the key investment themes driving DC plan decisions, current regulatory and legal developments, and survey insights from participants, sponsors, and advisors. On the corporate DB side, we examine how funded status continues to affect plan strategy, including the challenges posed by pension risk transfer lawsuits and the potential investment implications of de-risking. 

As we look ahead to 2026 and beyond, this outlook aims to provide plan sponsors and stakeholders with actionable insights and forward-looking strategies for building resilient retirement programs.