Defined contribution plan sponsors are recalibrating their priorities as artificial intelligence, fiduciary outsourcing, and participant well-being reshape the retirement plan landscape.
According to newly-released findings from Mercer’s Voice of the Plan Sponsor: 2025 DC Practices Survey, shared with InvestmentNews, the industry is adapting quickly to economic, regulatory, and technological pressures.
The research is based on feedback from 225 decision-makers overseeing more than $77 billion in assets and reveals that plan sponsors are juggling a wide mix of goals, with expanding financial wellness programs topping the list, followed closely by regulatory compliance and cost management, reflecting a push to support employees without undermining operational discipline.
Even as many organizations expect modest increases in their budgets, seven in ten are actively pursuing ways to lower costs, from plan redesigns to exploring multi-employer or pooled employer plan structures.
There’s also a growing trend toward delegation with eight in ten respondents now relying on external fiduciaries or consultants to navigate growing complexity and legal exposure.
Nearly half of respondents believe AI will have the greatest impact on plan success within the next three to five years and, in preparation, two thirds have already begun exploring or implementing AI and analytics tools aimed at improving plan oversight, enhancing participant engagement, and simplifying administration.
Governance remains a central pillar of effective DC plan management with most plans continuing to rely on committees of three to eight members to handle investments and oversight.
However, litigation remains a persistent worry with around 20% of sponsors reporting that they have faced legal challenges within the past five years with fee disputes and fiduciary responsibilities expanding the scope of risk.
Recordkeeper satisfaction is generally strong, though many plan sponsors continue to push for better transparency, enhanced technology, and bundled services that connect recordkeeping with broader benefit platforms.
Financial wellness continues to define the participant experience, the report highlights, with six in ten sponsors identifying helping employees meet their financial and retirement goals as their top program objective.
Advice delivery is also expanding, with two thirds offering managed accounts and more than half providing independent or digital guidance.
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