Skip to content
Friday, October 23, 2026 · Today’s edition, 6:30 a.m. ETFri, Oct 23 · 6:30 a.m. editionSign inMy Desk 0EditionsSign in

Cerulli: DC retirement income options need advice to drive adoption

The U.S. Defined Contribution Distribution 2026 report says 46% of participants want to withdraw money at any time, while 39% want a guaranteed monthly payment that continues after their savings run out.

At a glance

  1. The finding is in the U.S. Defined Contribution Distribution 2026 report, released this week and covered by 401(k) Specialist.
  2. Another 40% want a personalized, detailed and actionable plan to follow in retirement, and 31% want the ability to change their investments.
  3. Cerulli recommends more advice and planning for participants, deeper education for plan sponsors and intermediaries, and recordkeeper infrastructure that supports lifetime income options.

Putting a retirement income option on a defined-contribution plan menu does not mean participants will use it or understand why it matters, Cerulli Associates says. The finding is in the U.S. Defined Contribution Distribution 2026 report, released this week and covered by 401(k) Specialist.

"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," Cerulli director Chris Bailey said in a release.

46% of participants want to be able to withdraw money at any time, while 39% want a guaranteed monthly payment that continues after their savings run out. Another 40% want a personalized, detailed and actionable plan to follow in retirement, and 31% want the ability to change their investments.

Cerulli recommends more advice and planning for participants, deeper education for plan sponsors and intermediaries, and recordkeeper infrastructure that supports lifetime income options. Industry consultants quoted in the research say plan sponsors may have to offer two or three different options per plan to satisfy participants' varied needs.

Recordkeepers are already the default rail for bringing income inside the plan. J.P. Morgan broadened access to SmartRetirement Lifetime Income on Retirement Link through an expanded connection with Empower, as 401(k) Specialist reported on Oct. 7. Cerulli and Morningstar reported this month that 10.2% of advisers' wealth clients come from DC plans.

What participants want from retirement income

  • Withdraw money at any time46%
  • Personalized, actionable retirement plan40%
  • Guaranteed monthly payment for life39%
  • Ability to change investments31%
Source: Cerulli Associates · U.S. Defined Contribution Distribution 2026
Show as table
ItemValue (%)
Withdraw money at any time46%
Personalized, actionable retirement plan40%
Guaranteed monthly payment for life39%
Ability to change investments31%

Reported by the Income & Annuities desk from 401(k) Specialist and Retirement Capital Daily archive. Published . Corrections

Related

Retirement

Cerulli finds no single DC income preference dominates; Guardian cites 64% guaranteed-income confidence

In Cerulli's DC distribution report, 46% of participants wanted flexible withdrawals and 39% guaranteed monthly income, while Guardian found only 34% had planned for income past age 80.

Retirement

Cerulli: 46% of pre-retirees want anytime withdrawals, 39% guaranteed income

Consultants told Cerulli plans may need two or three retirement income options to meet varied preferences.

Retirement

Cerulli and Morningstar find 10.2% of advisors' wealth clients come from DC plans

The joint research cites time, staffing and $250,000 account minimums as the friction that keeps plan relationships from becoming wealth relationships.

Retirement

Capital Group paper lays out 4% to 5.5% withdrawal rates for target-date funds

The framework models a 30-year retirement, with fixed annual withdrawals starting at 4% to 4.5% and variable withdrawals at 5% to 5.5%.

Retirement

Capital Group publishes 4% to 5.5% target date withdrawal ranges

The Los Angeles manager also renamed its 2010 through 2025 target date funds to include "retirement income," pointing the funds at the spending phase.

Retirement Capital Dailyfrom Private Wealth Daily

Plan menus, in-plan income, rollovers and recordkeepers. Weekdays at 7:00 a.m. ET.

Free. Weekday mornings. Unsubscribe from any edition in one click.

From other sections