Focusing more on participants might seem to be obvious, but not all plans do so—or do it well. According to the report, "Incentives are insufficiently aligned to the needs of the plan partici­pant; as one interviewee put it, the industry 'forgot about the member.'"

The report adds, "Getting a worker into the retirement plan is one thing, but designing every aspect of an appropriate default pathway to last a lifetime—contribution levels; investment strategy; retirement planning; drawdown strategy; longevity insurance—requires more information about the individual, their circumstances and their goals. Members need to be engaged."

The need for economies of scale to deliver cost-effective delivery of high-quality DC offerings will prompt evolution of how plans are designed as well—and the need to stay mindful of regulatory changes will also bring about additional changes.

And since there hasn't been enough attention focused on the payout phase of DC plans, that too will undergo a transformation as plans seek ways to implement ways to provide post-retirement income.

And the ever-increasing need to consider security will also drive more attention—and more expense—to ways to prevent fraud and other incursions into data and assets.

Future DC systems, says the report, will need to have "four well-functioning elements": the ability to manage lifetime wealth, to secure retirement income, to insure longevity tail risk and to have integrated member engagement.

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