Retirement is increasingly defined by a secure income stream

Defined contribution plan sponsors increasingly support approaches that help workers convert retirement savings into a dependable income stream, MetLife research found.

Among the survey’s findings:

--95% of respondents said that they are knowledgeable about efforts by policymakers and the U.S. Departments of Labor and Treasury to strengthen Americans’ retirement security through lifelong retirement income options.

--59% support requiring 401(k) plans to offer lifetime income at retirement, and 54% support defaulting a portion of savings into guaranteed income.

--66% would support a SECURE 3.0 package that includes retirement income.

-- 83% said that lump sums alone may not protect against outliving savings. This is up from 72% in 2016.

Why the change in approach

Plan sponsors are redefining retirement success around income as an outcome, not just accumulation, said Roberta Rafaloff, explaining some reasons why many sponsors are taking this approach. Rafaloff is head of institutional income annuities at MetLife.

“Our research shows nine in 10 believe the core purpose of a defined contribution plan is to provide income in retirement, reflecting a growing recognition that account balances alone do not capture what participants ultimately need,” she added.

Several forces are driving this shift, Rafaloff said. Employees are living longer, facing more unpredictable expenses in retirement and managing greater responsibility as traditional pensions decline. In that environment, she added, plan sponsors increasingly see a secure income stream as the most effective way to help participants enjoy financial security in retirement and avoid outliving their savings.

There is also a growing understanding that framing retirement as a paycheck rather than a lump sum changes behavior, Rafaloff added. “When outcomes are expressed in terms of income, it becomes easier for participants to plan, spend and feel confident in their financial future,” she said.

The survey also noted that retirement income is a core workplace outcome, and many are looking for frameworks that help translate savings into sustainable income. The research also shows increased support for the idea that encouraging workers to consider guaranteed lifetime income options represents sound public policy, with 82% agreeing.

Turning savings into income

What are some steps financial professionals can take to help plan sponsors searching for frameworks that help translate savings into a sustainable income?

Financial professionals play a critical role in educating plan sponsors and helping them to move from a savings mindset to an income framework, Rafaloff pointed out. That starts, she added, by reframing retirement in terms of a monthly paycheck rather than an account balance, which helps sponsors understand better what those savings need to deliver in retirement.

From there, the most effective frameworks focus on simplicity, flexibility and real-world outcomes, Rafaloff said. That includes incorporating plan options that are easy to implement and that participants can easily understand and act on. “Our research shows sponsors are not looking for all-or-nothing solutions; they want flexible pathways that allow participants to combine guaranteed income with liquid assets,” she added.

Ultimately, Rafaloff said, “the most effective frameworks are those that translate complexity into clarity: helping sponsors deliver straightforward, scalable solutions that turn savings into dependable income participants can rely on throughout retirement.”

The MetLife 2026 Lifetime Income Poll was fielded from February 3-16, 2026. MetLife commissioned MMR Research Associates, Inc. to conduct the online survey of DC plan sponsors whose company offers a 401(k) plan. There were 242 DC plan sponsors who participated in the survey. Among the plan sponsor-respondents, 66% reported DC plan assets of $250 million or more, with 12% having assets greater than $1 billion.

To read the full report, visit: metlife.com/2026LifetimeIncomePoll.

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