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Insights from Callan's 2026 Defined Contribution Trends Survey

Callan, a prominent institution in investment consulting, has released the findings from its 2026 Defined Contribution (DC) Trends Survey—marking its 19th annual iteration. The survey, conducted late in 2025 and embracing a wide range of DC plan sponsors, outlines significant shifts and persistent themes within the DC landscape. This year's survey responses came from 80 leading mega DC plan sponsors, focusing on key aspects of DC plan management such as governance, investment strategies, fees, and overall plan design.

Summary of Key Findings

The survey highlights that the primary concerns for DC plan sponsors continue to emphasize governance practices, fee structures, and investment approaches. According to Patrick Wisdom, a vice president and DC consultant at Callan, 'As innovations arise around guaranteed income solutions and private market opportunities, having a robust governance framework and reliable fiduciary principles is more critical than ever for plan sponsors.'

1. Priority Areas: The top priority identified in the survey was governance processes, followed closely by managing investment fees and the evaluation of investment structures. This denotes a continuing trend toward prioritizing wise governance to safeguard participant interests.

2. Fiduciary Actions: The most common fiduciary action for the past year was reviewing the investment policy statement, reflecting an obligation to ensure that the guidelines meet evolving market conditions. Completing formal fiduciary training for committee members was another major step, although participation saw a slight decline from the previous year.

3. Target Date Fund Adjustments: More than three-quarters of respondents indicated they made at least one modification to their target date funds in 2025, underscoring the adaptive nature of these plans in response to changing participant needs and market conditions.

4. Investment Vehicles: Mutual funds and collective investment trusts (CITs) remain the preferred investment vehicles for DC plans in 2025. An impressive 83% of respondents opted for mutual funds, compared to 77% who utilized CITs, which highlights the ongoing importance of these funds in DC plan strategies.

5. SECURE 2.0 Insights: The survey confirmed that among the SECURE 2.0 provisions, the option for increased catch-up contributions for participants aged 60 to 63 was the most widely adopted, reflecting a significant shift toward helping older participants maximize their retirement savings.

Broader Implications for the DC Landscape

The findings from Callan's survey not only reflect current trends but also signal potential shifts in how DC plans will adapt to future challenges. Emphasizing effective governance and durable fiduciary practices will be essential as the industry navigates innovations in investment opportunities and regulatory changes. With assets in many of the surveyed plans exceeding $200 million and participant bases often comprising over 10,000 individuals, the stakes for DC plan sponsors are high.

About Callan

Since its establishment in 1973, Callan has served as an employee-owned investment consulting firm dedicated to empowering its institutional clients with innovative investment solutions backed by proprietary research and extensive educational resources. Today, they manage a client base with assets totaling over $3 trillion, positioning them as one of the largest independent investment consulting firms in the United States. Their commitment to a client-centric consulting model helps various asset owners, including pension plans and endowments, efficiently navigate the complex investment landscape.

In conclusion, the 2026 Defined Contribution Trends Survey from Callan offers critical insights that can guide plan sponsors in optimizing their offerings to address participant needs more effectively in an ever-changing financial environment.