The PS5 is confirmed to feature backwards compatibility, as Mark Cerny (PS5 system architect) said, “PS4 graphics engines will run just fine on PlayStation 5”.
Those PS4 games will supposedly run at boosted frequencies, which could potentially result in improved visuals and performance.
PlayStation did suggest only the “top 100 PS4 games” will be supported by the PS5 at launch though, with more expected to revive the required patches at a later point.
PS5 VR – Will your headset and peripherals work at launch?
PS5 Games – Have any titles been announced?

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