2022 PIMCO US Defined Contribution Consulting Study

Seeking to help consultants, advisors and plan sponsors understand evolving views and current trends within the DC marketplace.

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.

  • 36 Institutional Consultant and Aggregator Firms*

  • 37,000 Clients Served

  • DC Assets in Excess of $6.9 Trillion


All responses were collected from January 3, 2022 through March 7, 2022.

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

1. Question to Consultants: What will your firm's top strategic DC priorities be in 2022?

2. Question to Consultants: What will your clients' priorities be in 2022?

3. Question to Consultants: Which actions do you recommend plan sponsors take to encourage retirees to retain their assets in the plan?

Key Findings

Download PIMCO’s DC Consulting Study key findings report for the latest trends and supporting data.

Disclosures

This material contains opinions of survey respondents as of the date noted and not necessarily those of PIMCO. Such opinions are subject to change without notice and may not have been updated to reflect real time market developments. The results have been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product.

All investments contain risk and may lose value. Investors should consult their investment professional prior to making an investment decision.

Target Date Funds (TDFs) are designed to provide investors with a retirement solution tailored to the time when they expect to retire or plan to start withdrawing money (the "target date"). Target Date Funds will gradually shift their emphasis from more aggressive investments to more conservative ones based on their target dates. Target Date Funds invest in other funds and instruments based on a long-term asset allocation glide path and performance is subject to underlying investment weightings, which will change over time. An investment in a Target Date Fund does not eliminate the need for an investor to determine whether a Fund is appropriate for his or her financial situation. An investment in a Fund is not guaranteed. Investors may experience losses, including losses near, at, or after the target date, and there is no guarantee that a Fund will provide adequate income at and through retirement.

PIMCO does not offer insurance guaranteed products or products that offer investments containing both securities and insurance features.

PIMCO as a general matter provides services to qualified institutions, financial intermediaries and institutional investors. Individual investors should contact their own financial professional to determine the most appropriate investment options for their financial situation. This material contains the current opinions of the manager and such opinions are subject to change without notice. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. PIMCO is a trademark of Allianz Asset Management of America L.P. in the United States and throughout the world. ©2022, PIMCO

CMR2022-0517-2205074

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