In-plan lifetime income solutions are gaining traction, fueled by strong participant interest and new regulatory support from the Department of Labor. Discover how these developments are bolstering support for annuities and contributing to the strengthening of the U.S. retirement system.
The retirement planning landscape in 2026 is evolving, with a growing focus on addressing decumulation challenges. Recent research from the Allianz Center for the Future of Retirement® highlights participant interest in lifetime income solutions, such as annuities, while new regulatory updates from the Department of Labor (DOL) are helping create a supportive environment for their adoption.
Participant Demand for Lifetime Income Solutions is Growing
Workers are increasingly prioritizing financial security in retirement, and the data paints a compelling picture. A recent survey by the Allianz Center for the Future of Retirement® reveals that 72% of workers would consider adding an annuity to their retirement plan if it were available, a slight increase from 69% in 2024.1
This upward trend underscores a growing appreciation for the value of guaranteed income streams in retirement, particularly as individuals seek to avoid the complexities of managing and spending down their savings. In fact, 86% of plan participants expressed a preference for receiving a steady stream of retirement income over the uncertainty of figuring out how to draw down their savings.1
"The growing interest in predictable income highlights the importance workers place on financial security in retirement," says Matt Gray, Vice President of Employer Markets at Allianz Life Insurance Company of North America. He adds, "Lifetime income solutions offer a practical way to help participants manage their savings and plan for the future. It’s inspiring to see this momentum continue to build."
Defined Contribution Plans Represent A Significant Opportunity
The opportunity for innovation within employer-sponsored retirement plans is immense. According to the Investment Company Institute (ICI), Americans held $14.2 trillion in employer-based defined contribution (DC) retirement plans as of December 31, 2025.2 DC plans are a cornerstone of the U.S. retirement system, and integrating in-plan annuity solutions could provide participants with enhanced options for financial security.
By incorporating in-plan annuities, employers can offer participants a meaningful way to secure lifetime income, particularly benefiting those who may lack access to a financial advisor or other financial resources. Employees recognize the value of such offerings, with 82% of workers stating that the option to create a secure foundation for lifetime income demonstrates their employer's commitment to their retirement preparedness and overall well-being.¹
The structure of in-plan annuities also aligns with workers' preferences for gradual contributions. Among those interested in in-plan annuities, 80% prefer contributing small amounts over time through payroll deductions rather than making a one-time lump sum contribution.1 This approach not only makes annuities more accessible but also allows workers to build their retirement income steadily and sustainably.
Regulatory Momentum is Paving the Way
In March 2026, the Department of Labor introduced a proposed rule designed to establish a process-based framework for incorporating alternative investments and lifetime income solutions into defined contribution (DC) plans.
While the proposal has garnered attention for potentially expanding investment options to include assets such as private credit, cryptocurrency, and real estate, its emphasis on lifetime income solutions highlights the growing importance of addressing retirement income security.
The proposed rule outlines a six-factor framework to guide plan fiduciaries in evaluating and integrating options like annuities. By focusing on a structured decision-making process, the proposal aims to address concerns about fiduciary risk, thereby giving plan sponsors significant discretion to consider innovative solutions that can help add value for their plan and its participants.
With this proposal, the Department recognizes the need to support fiduciaries in prudently evaluating innovative solutions such as alternative investments and lifetime income options. By providing a structured framework, it aims to empower fiduciaries to navigate these emerging opportunities responsibly as the retirement landscape continues to evolve.
While the rule is still in the proposal stage, its focus on fostering flexibility and innovation underscores the growing importance of adapting DC plans to meet the evolving needs of a diverse and aging workforce.
The Future of Retirement Planning is Here
The convergence of participant demand and regulatory support is driving significant progress for lifetime income solutions in 2026. With more workers recognizing the value of predictable income, and the Department of Labor driving toward providing the necessary framework for adoption, these solutions are poised to become a more common feature of defined contribution plans.
This shift represents a meaningful step forward in helping workers achieve greater financial security and stability in retirement.
For more insights, download the latest white paper from the Allianz Center for the Future of Retirement® or contact the Employer Markets team today.
