The next era of US retirement: Four shifts redefining competition
By McKinsey & Company ·
Based on a survey of 75 US retirement plan consultants and 11 of the 20 largest recordkeepers, McKinsey identifies four shifts reshaping the US retirement market: AI capabilities, alternatives and retirement income in DC plans, convergence with wealth management, and pooled employer plans. Seventy percent of recordkeepers expect AI spending to double within two years, but only about 25 percent have launched AI initiatives at scale.
Key figures
| Figure | Value | Source |
|---|---|---|
| Consultant responses expecting AI capabilities and governance to weigh more in recordkeeper evaluations | Approximately 57 percent | p. 2 |
| Recordkeepers expecting AI spending to double over the next two years | 70 percent | p. 2 |
| Recordkeepers reporting AI initiatives at scale | only about 25 percent | p. 3 |
| Consultants citing diversification as a rationale for alternatives in DC plans | Around 80 percent (63 percent cite return potential) | p. 4 |
| Consultants expecting at most 25 percent of advised DC plans to offer in-plan income within two to three years | 72 percent of the sample set | p. 7 |
- United States, North America