MetLife Retirement & Income Solutions

Video: 2026 Paycheck or Pot of Gold Study - The Decumulation Dilemma

Jul 16, 2026

Video Transcript:

Over the past decade, the U.S. pension risk transfer market has undergone a remarkable transformation.

Since 2015, annual transaction volumes have grown from under $14 billion to nearly $52 billion.

And with over $3 trillion in private sector defined benefit assets yet to be de-risked, the market could reach $100 billion by 2030.

For our 2025 poll, MetLife surveyed 231 defined benefit plan sponsors with de-risking goals.

The findings reveal a market that is active, sophisticated and increasingly action oriented.

The commitment to de-risk remains strong.

94% of companies with de-risking goals plan to completely divest their pension liabilities and the same percentage say their plans are garnering significant attention from corporate management due to the financial volatility created by these obligations.

Sponsors are preparing for action.

Over the last decade, plan sponsors have evolved from exploratory to action oriented steps.

Today, improving participant data quality tops the list of preparations - a critical foundation for efficient risk transfer execution.

The timeline is accelerating.

86% of plan sponsors plan to act within five years, with 95% of them considering a pension risk transfer to an insurer.

Market volatility remains the top catalyst driving action.

Annuity buyouts are the preferred solution.

Today, nearly 8 in 10 plan sponsors say they'll use an annuity buyout to achieve their de-risking goals, up significantly from just 46% in 2015.

These insights signal a new era of strategic pension stewardship, one where plan sponsors are taking decisive action to secure the retirement promises they've made.

Video Transcript:

With longer lifespans and rising costs, retirement security increasingly depends on how defined contribution plan savings translate into sustainable income. MetLife's 2026 Paycheck or Pot of Gold Study – a survey of 2,022 pre-retirees and retirees – looks at the decumulation dilemma—the moment when individuals need to make a critical decision about how they are going to shift from building wealth to drawing it down.

The decumulation dilemma is intensifying. While defined contribution plans focus on accumulating assets, the real challenge emerges at retirement: choosing between a lump sum or an annuity. Today, 58% of pre-retirees worry about running out of money, alongside 51% of retirees who still have savings.

Lump sums are vanishing faster than ever. One in five retirees who took a lump sum have already depleted it… and the pace is accelerating. Spend-downs took 5½ years in 2017, 5 years in 2022, and just 4½ years today.

A widening longevity gap. Retirees with money left, estimate they have just 11 years of savings remaining –far short of the 20-plus years many will live in retirement. These trends challenge long-standing rules like the 4% withdrawal strategy.

Guaranteed income offers a path forward. 92% of pre-retirees and 86% of retirees say a monthly retirement "paycheck" is very important or absolutely essential.

Among retirees who selected an annuity, 93% are happy with their decision, 94% feel financially secure, and 92% report peace of mind.

Nearly all say annuity payments make it easier to pay for necessities (93%) and create predictable budgets (92%).

The takeaway is clear: in 2026 and beyond, when faced with the decumulation decision, an income annuity can help participants achieve successful retirement outcomes.

Visit metlife.com/2026paycheckstudy.