NQDC Plans Gain Traction as Employers Prioritize Executive Financial Wellness
Event summary
- 84% of employers expect AI to improve decision-making in NQDC plans, including deferral modeling.
- 79% of employers cite attracting and retaining executives as the top reason for offering NQDC plans.
- Use of corporate-owned life insurance (COLI) for NQDC plan financing rose to 50% in 2026 from 40% in 2024.
- 46% of employers identify participant understanding as the top barrier to NQDC plan participation.
The big picture
Employers are increasingly viewing NQDC plans as critical tools for attracting and retaining executive talent, with 80% seeing them as effective. This shift reflects a broader trend of integrating financial wellness into talent strategies, particularly as AI emerges as a decision-support tool. Ascensus, through its Newport division, is well-positioned in this space, serving a quarter of the Fortune 500 with specialized NQDC expertise.
What we're watching
- AI Integration
- How AI will enhance deferral and distribution modeling in NQDC plans.
- Participant Education
- Whether improved communications can overcome the 46% barrier to participation.
- COLI Growth
- The pace at which COLI adoption will continue rising as a financing tool.