DC Plans Shift Toward Personalized Retirement Income Solutions

Workplace retirement plans have historically been measured by participation and balances. But as more Americans approach retirement without traditional pensions, plan sponsors and consultants are asking a different question: “How will participants turn savings into income?” T. Rowe Price’s 2025 Defined Contribution (DC) Consultant Study captures this shift—highlighting a growing focus on retirement income, personalization, and stability tools designed for the spending phase.

Income Is Becoming a Primary Planning Lens

The study reflects an important evolution: retirement readiness is increasingly viewed through income sustainability, not just account growth. For many participants, the real stress begins when withdrawals start—because sequence-of-returns risk and volatility can matter more when money is leaving the account.

As a result, more attention is being placed on plan features and investment structures that support income decisions, withdrawal behavior, and long-term durability.

Target Date Solutions Are Under New Pressure to “Do More”

Target date solutions remain central to most plans, but expectations are changing. Consultants are evaluating how target date designs behave near retirement and into early retirement—when participants may be de-risking, rolling assets, or beginning withdrawals.

What’s changing is the end goal: success isn’t just “did it grow,” but “did it help participants stay on track when retirement begins?”

Managed Accounts Reflect Demand for Personalization

Managed accounts continue to draw interest because they can help tailor planning to individual circumstances. Not all retirees share the same timeline, spending needs, or risk tolerance, and one-size defaults can break down as retirement approaches.

Personalization can be especially important when participants are coordinating multiple income sources—Social Security timing, account withdrawals, and stability tools that help smooth income across market cycles.

Stability Tools Re-Enter the Conversation

The study also reflects continued attention on fixed income and capital preservation tools in plan lineups. Regardless of interest-rate environments, stability tools tend to matter most at the same time: when retirees are withdrawing and cannot easily “wait out” volatility.

For income planning, stability isn’t about eliminating risk—it’s about controlling how risk impacts withdrawals and lifestyle spending year to year.

Why These Findings Matter

The practical message is that retirement planning is becoming more outcomes-driven. As the system shifts from pensions to participant-managed plans, the need for reliable income frameworks becomes more central—not optional.

Source: T. Rowe Price. Original press release published September 9, 2025.
Read the original release.