Retirement benefits at work are no longer optional extras — they’re essential for recruiting and retaining workers. As a result, it’s critical that employers grasp the ways in which retirement benefits are changing, so that workers can be healthy, satisfied, and productive members of your team.

That’s not the only benefit. Staying on top of trends allows employers to be more efficient in their decision-making about what to offer in retirement plans, reducing the number of outdated or unpopular benefits and eliminating much of the guesswork. Companies in tune with modern expectations and preferences will attract more talent, retain them longer, and save more time and money in the long run.

Here are three of the biggest trends and strategies that employers should be tracking closely right now. 

Trend #1: Personalizing Your Plans

Retirement plans are rapidly evolving beyond the traditional employer-sponsored, defined-contribution plans. One flaw in the old model is that, as participants age, their investment options dwindle, and their portfolios automatically shift to more conservative investments. It’s just one way in which traditional plans tend to oversimplify participants’ unique financial situations and often fall short of meeting their individual goals.

Instead, data-driven personalization is more feasible than ever due to advancements in technology (such as analytics and ongoing optimization systems). Companies are increasingly able to shape retirement strategies around workers’ personalized needs and preferences, accounting for variables such as income, risk tolerance, and life circumstances. Personalized solutions also empower participants by placing them at the center of ongoing decision-making rather than treating them as passive investors.

Plan sponsors should start by collaborating with technology partners and recordkeepers; then build comprehensive, data-driven participant profiles that go beyond age to include factors such as salary, contribution rates, account balances, and personal milestones. Finally, employers should implement systems that enable ongoing optimization of each plan.

Trend #2: Integrating Financial Wellness

Two-thirds of all U.S. workers report a lack of confidence in their ability to save and plan for a comfortable retirement. It’s one reason why more employers are stepping up to help, recognizing that a workplace with quality financial wellness can reduce stress and ultimately empower employees to perform at their best.

Employers are increasingly expanding beyond traditional retirement plans by introducing flexible benefits that support employees’ broader financial well-being. Some of these programs reimburse employees for approved expenses. While often associated with physical wellness, many organizations are directing these funds toward broader financial wellness initiatives, including services such as student-loan support, estate planning, and retirement-planning guidance.

When structured with retirement readiness in mind, these benefits give employees the resources to seek professional advice, access planning tools, and deepen their investment knowledge — helping to reduce financial stress while fostering a more confident and engaged workforce.

Trend #3: Shifting Rules and Regulations

Though the SECURE Act 2.0 was signed into law in December 2022, its provisions have been phased in over time, with some yet to take effect. The stated goal of the legislation was to encourage more Americans to save for retirement through their employer-sponsored plans by changing the rules that cover 401(k)s, 403(b)s, traditional IRAs, and Roth accounts. 

Among the rules changes that have already taken effect, which plan sponsors should have already strategized for, include:

• Increased eligibility for part-time workers: Those who work 500 hours per year for two consecutive years can now access a ​​company’s retirement plan.

• Age for Required Minimum Distributions (RMDs): An RMD is a mandatory withdrawal from a retirement account that’s triggered by a participant’s age. Before the SECURE Act 2.0, the RMD age was 72; it is now 73, but will increase to 75 starting in 2033.

• Automatic Enrollment: The federal government now requires any new 401(k) or 403(b) plan to enroll every employee, unless that individual elects not to participate.

While the legislation’s impact has already been significant, plan sponsors should also pay attention to recent and future changes. As of January 2026, the federal government offers a Roth Catch-up Rule for workers who earn at least $145,000 and are age 50 or older. This rule allows eligible participants to contribute extra money to their retirement accounts, which must now be done on a post-tax basis. Employers must comply with the law or face potential penalties.

Another rule change will arrive in 2027, when the federal government will begin to offer a new matching contribution through the SECURE Act 2.0 — replacing the “Saver’s Credit” and providing up to $2,000 in matching contributions for some employees.

Plan sponsors need to ensure compliance with each of these legislative changes. Beyond compliance, employers should treat the shifting legislative landscape as an opportunity to perform a holistic review of the retirement options they offer.

Turning Your Retirement Plan Into an Asset

Managing a retirement plan is more complicated than it used to be, but with the right expertise, it can also be more rewarding than ever. Tailor-made retirement plans are key differentiators for companies competing to recruit and retain talent.

At Faubourg, we work with plan sponsors to help them embrace the latest trends by:

• Consulting on 401(k) and 403(b) startups — showing employers how to set up and optimize these plans
  
  
• Plan design and compliance assistance — structuring personalized plans that comply with regulations and fit employer goals
  
  
• Provider analysis and benchmarking — comparing different plan providers and investment options
  
  
• Non-traditional offerings support — assistance with alternatives or additions to standard retirement plans

In addition to working with employers, we believe it’s essential to engage with plan participants. Our approach provides communications support and fiduciary guidance to employees, ensuring engagement at every level of the company.

Take The Next Step

If you’re a plan sponsor, now is an ideal time to take the next steps with Faubourg to maximize the impact of your retirement benefits.

Reach out to us today to schedule a meeting!