Understanding the New Defined Contribution Landscape In its 16th year, the PIMCO US Defined Contribution Consulting Study seeks to help consultants, advisors and plan sponsors understand the breadth of views and consulting services avaliable within the defined contribution (DC) marketplace. business 36 Institutional Consultant and Aggregator Firms* people 37,000 Clients Served work DC Assets in Excess of $6.9 Trillion A Call for Evolution? 4 of 5 consultants don't believe current plan options suffice for retirees. Currently evaluating new investments designed for retired participants to determine if such offerings are complementary to existing designated options. 63% No, the current options (e.g., at-retirement TDF, Stable Value, etc.) suffice as options for retirees. 20% Yes, I recommend adding new, retiree-focused investment options to plans. 17% Question to Consultants: Do you recommend adding new plan investment options specifically to cater to retirees? (n=35) The Experts Disagree Clear divergence between top recommended retirement investment solution. Target-date fund with regular level payout 64% 10% Target-date fund with embedded guarantees 48% 50% Managed accounts 40% 60% Target-date fund 28% 10% In-plan annuity (deferred, immediate, QLAC) 12% 50% Institutional Consultant (n=25) Aggregator (n=10) Question to Consultants: Which of the following investment options—if any—are you most likely to recommend as a retirement income solution? Select up to 3. (n=35) The Potential in Personalization Signals of demand for personalized solutions are beginning to emerge. 40% of Institutional Consultants state their top priority is to Expand Custom investment solutions capability1(tied for #1 with Enhance OCIO capabilities) 25% of Aggregators state their leading-edge clients’ top priority is to Evaluate additional features to create greater personalization for participants2 65% of Institutional Consultants recommend Offering personalized advice/investment experience to encourage retirees to stay in the plan.3 80% of Aggregators recommend Offering personalized advice/investment experience to encourage retirees to stay in the plan.3 Want More Insights Like This? Subscribe to Defined Contribution Insights for our latest publications or learn more about Defined Contribution today. Subscribe PIMCO Defined Contribution Key Findings Download PIMCO’s DC Consulting Study key findings report for the latest trends and supporting data.