A Fresh Take on Retirement Plans: 8 Trends In 2026
The retirement landscape is changing — fast. From financial stress among younger workers to the rise of SECURE 2.0 provisions, discover the trends reshaping retirement plans in 2026.
Out with the old and in with the new. In 2026, the traditional approach to retirement planning is quickly evolving to meet the needs of today's financially stretched workforce.
With nearly 40%1 of employees living paycheck-to-paycheck and younger generations more concerned about their financial futures, retirement plans must offer more than investment options to meet the goal of attracting new hires and keeping great people.
This year, workers need accessible resources, flexible plan features and personalized support that makes saving for retirement feel achievable.
Here are eight key trends shaping retirement plans in 2026.
1. Retirement readiness concerns prompt plan design changes.
ADP data 2 reveals that 31% of employers feel their participants are not on track for a secure retirement, while 28% cite low plan participation as a concern. In response, plan sponsors are looking into plan health data to identify exactly where employees are struggling and how they can help.
By monitoring metrics like contribution rates and plan leakage, for example, plan sponsors can pinpoint warning signs early and implement targeted solutions like increasing the employer match or addressing the root causes of early withdrawals.
2. Company match is a priority.
Retirement security is the foundation of financial wellness. According to 2025 ADP research,3 almost two-thirds of employers believe maximizing company match contributions should be employees' top priority, outpacing emergency savings (18%) and debt reduction (12%). In fact, 15% of employers are even considering increasing company match as a key enrollment driver.
Communicating the value of "free money" through company match can be a valuable tactic to increase participation and help employees build wealth over time.
3. Financial stress among younger workers demands attention.
Only 12%4 of workers ages 25-35 feel confident about their current financial situation, and one in four5 across all ages describe their finances negatively. For younger workers navigating student loans and economic volatility, retirement saving often takes a back seat to immediate financial needs. And when basic financial stability feels impossible, they're less likely to contribute to a 401(k).
Plan sponsors can meet these employees where they are with budgeting tools and personalized insights that help address their concerns and support smarter financial decisions.
4. SECURE 2.0 provisions gain traction.
Plan sponsors continue to adopt SECURE 2.0 Act features to give employees more options to meet their immediate financial needs and long-term retirement goals.
Emergency savings accounts, student loan matching and enhanced withdrawal options can support workers as they navigate financial challenges. For example, employees facing financial emergencies can withdraw up to $1,000 per year from their 401(k) without the 10% penalty that normally applies to early withdrawals.
5. Financial wellness resources remain underutilized.
Despite the availability of workplace financial wellness programs, a significant gap exists in awareness and usage. ADP data6 reveals that 34% of workers ages 35-62 say these resources are unavailable, while 21% are unsure if their workplace offers them.
This is an opportunity for plan sponsors to raise awareness and promote programs that teach emergency savings and debt management strategies, plus educational content on critical retirement saving concepts like the power of compounding and the importance of starting to save early.
6. Automation and digital tools take center stage.
Research7 shows that plan features like mobile enrollment apps (39%) and improved website content (26%) are the most effective features for increasing plan enrollment. But according to ADP data,8 three in four employees ages 25-35 participate in their company's retirement plan, and only two percent contribute the plan maximum.
While automatic enrollment remains the gold standard for boosting participation rates, this year, plan sponsors are also exploring auto-escalation features that gradually increase contribution rates over time to improve long-term savings.
7. Outsourcing is on the table.
Plan sponsors are also reporting a growing interest in outsourcing fiduciary responsibilities and compliance tasks to plan providers, freeing up time and resources to focus on other business objectives.
By working with specialized providers who can navigate the complex regulatory landscape and reduce the administrative burden on internal teams, companies can mitigate compliance risks while gaining access to best-in-class technology and solutions.
8. Female employees need targeted support.
Women in the workforce are spending more on living expenses and saving less for their financial futures. Fifty-five percent9 report feeling overwhelmed or worried about their financial situation.
Employers can help women improve their finances and overcome financial anxiety with financial wellness and retirement education resources geared toward their needs. For example, maximizing Social Security can be a valuable topic for older women in the workforce who are struggling to save.
Repaving the road to retirement readiness
By prioritizing education, leveraging technology and embracing tools to help expand employee engagement, plan sponsors can create a retirement plan that drives both participation and long-term retirement security.
Find out how ADP can help you support your employees as they save for the next phase with flexible plan designs that enhance efficiencies and boost retirement outcomes, all while offering seamless embedded payroll to save time and minimize errors. Reach out to an ADP retirement services specialist or call (800) 432-401K.
ADP, Inc., and its affiliates do not offer investment, tax, or legal advice to individuals. Nothing contained in this article is intended to be, nor should be construed as, particularized advice or a recommendation or suggestion that you take or not take a particular action.
Only registered representatives of ADP Broker Dealer, Inc. (ADP BD), Member FINRA, an affiliate of ADP, Inc., One ADP Blvd, Roseland, NJ 07068, may offer and sell ADP retirement products or speak to retirement plan features and/or investment options available in such ADP retirement products.
Questions about how laws, regulations, guidance, your plan's provisions, or services available to participants may apply to you should be directed to your plan administrator or legal, tax or financial advisor.
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1. ADP Retirement Services, Retirement Plan Loans and Withdrawals: Emergency Expenses and Debt Drive Utilization, 2025
2. ADP Retirement Services, Employer Insights on Retirement Benefits, 2025
3. ADP Retirement Services, Employer Insights on Retirement Benefits, 2025
4. ADP Retirement Services, Early Career Workers' Perspectives on Financial Challenges, 2024
5. ADP Retirement Services, Retirement Plan Loans and Withdrawals: Emergency Expenses and Debt Drive Utilization, 2025
6. ADP Retirement Services, Employer Insights on Retirement Benefits, 2025
7. ADP Retirement Services, Employer Insights on Retirement Plan Benefits, 2025
8. ADP Retirement Services, Early Career Workers' Perspectives on Financial Challenges, 2024
9. ADP Retirement Services, Women and Investing study, 2024
