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Deferred compensation demand broadens beyond C-suite executives
A new report finds 82% of employers say deferred comp has a high or moderate impact on plan success, helped by rising satisfaction to 76% in 2026.
Insurance Business reports that nonqualified deferred compensation, long marketed mainly to a limited slice of C-suite executives, is increasingly moving into the broader pool of “key employees” as compensation levels rise. The shift shows up in NFP’s newly published 2026 US Executive Benefits Trend Report, which surveyed 273 executive benefits decision-makers nationwide with research firm Empatix. The report says deferred comp demand is expanding beyond traditional executive populations, as more employees move into higher compensation brackets and seek tax-efficient deferral tools.
According to Insurance Business, a SECURE Act 2.0 provision taking effect this year alters tax-planning for many workers aged 50 and older, with catch-up retirement contributions required on an after-tax Roth basis rather than pre-tax for those earning above roughly $150,000 in prior-year FICA wages. The outlet notes that NQDC plans are not subject to that rule, which is part of why deferred comp is rated as more influential by employers.
Insurance Business also points to downstream drivers for brokers serving employee benefits, including the growth in earnings that moves more of the workforce into the income band where deferral tools become more relevant. The outlet adds that only 28% of key employees say they fully understand the executive benefits available to them, and that 23% of employers plan to increase participant education about deferred compensation plans.