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2025 was a year of change and opportunity for retirement investors. From new legislation to evolving investment strategies, the landscape shifted in ways that could impact your financial future.
Here are the key trends we at Franklin Templeton monitored — and what they mean for you as you look to 2026 and beyond.
Trend No. 1: Retirement plans are evolving
2025 saw the rollout of more SECURE 2.0 enhancements. New 401(k) and 403(b) plans must now automatically enroll employees at a 3% contribution rate, escalating up to 15%.
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Catch-up contributions for those aged 60 to 63 increased to $10,000, or 50% more than the standard limit. Part-time workers gained better access, and a national database is being developed to help locate lost accounts.
What it means for you. These changes make it easier to save more for retirement and ensure you do not miss out on valuable benefits.
What you can do for 2026. Review your company’s retirement plan design. Maximize contributions and take advantage of new features — especially if you are nearing retirement age or work part-time.
Trend No. 2: Private wealth has surged
The retirement industry is booming, with assets projected to hit $52 trillion by 2029, according to Cerulli Associates’ U.S. Retirement Markets 2024 report.
This growth has put a spotlight on the need for highly trained financial advisers who can guide investors through complex decisions.
What it means for you. A knowledgeable adviser can help you navigate legislative changes, optimize your investment strategy and avoid costly mistakes.
What you can do for 2026. Work with advisers who invest in ongoing education and prioritize strong client relationships. Do not hesitate to ask about their training, approach and succession plan for their office.
Trend No. 3: Stable value funds are back in the spotlight …
What it means for you. Stable value funds can help protect your savings from market volatility, especially as you approach retirement.
What you can do for 2026. Ask your company or plan adviser about stable value options. Make sure your portfolio includes strategies to preserve capital in today’s interest-rate environment.
Keep in mind stable value is an investment that is specific to certain types of workplace savings plans.
Trend No. 4: … And so are target date funds
There is growing recognition that not all target date funds are created equal. The “glide path” — how a fund shifts from stocks to bonds over time — can have a significant impact on your outcomes.
What it means for you. Choosing the right glide path ensures your investments match your risk tolerance and retirement timeline.
What you can do for 2026. Review your target date fund’s glide path. Do not just rely on the fund’s label — make sure its approach fits your needs, goals and tolerance for risk.
Trend No. 5: Behavioral coaching is key
2025, like many years, was filled with alarming headlines and market swings. Many investors who automated their contributions and stuck to a diversified plan fared better than those who tried to time the market.
What it means for you. Emotional decisions can derail your long-term success. Consistency and discipline are key.
What you can do for 2026. Consider automating your savings and avoid reacting to short-term news. Trust your plan and stay focused on your long-term goals.
Trend No. 6: Advisers are giving support during uncertainty
Periods of market volatility and even government shutdowns heightened investor anxiety. Advisers who proactively communicated and provided historical context helped clients stay calm and engaged.
What it means for you. A supportive adviser can help you avoid rash decisions and keep your retirement plan on track.
What you can do for 2026. Stay in touch with your adviser, especially during uncertain times. Do not hesitate to reach out with questions or concerns. Remember 24/7/365 a year, news headlines may be a distraction to your retirement investment plan.
Trend No. 7: Maximizing workplace benefits is more important than ever
What it means for you. Comprehensive benefits can boost your overall financial wellness and help you make the most of your compensation package.
What you can do for 2026. Take time to review your benefits during open enrollment. Compare plans, ask questions and use available resources to make informed decisions.
Be aware that life events, such as marriage, divorce or a new child, may trigger the need to update your benefits midyear.
Make 2026 your best year yet
2025 brought significant changes to the retirement landscape. By understanding these trends and acting now, you can position yourself for greater financial security in the year ahead.
Review your strategy, leverage new opportunities and reach out to your adviser for guidance. Here’s to building more wealth in 2026!
