Understanding the New Defined Contribution Landscape In its 17th year, the PIMCO US Defined Contribution Consulting Study seeks to help consultants, advisors and plan sponsors understand the breadth of views and consulting services available within the defined contribution (DC) marketplace. business 36 Institutional Consultant and Aggregator Firms* people 25,000 Clients Served work DC Assets in Excess of $7.3 Trillion QDIA Option with the Most Growth Aggregators expect to see the most growth in dual-QDIA options, while Institutional Consultants split Dual-QDIA 50% 22% Target date 25% 26% Target date with embedded guarantee 25% 22% Institutional Consultant (n=27) Aggregator (n=8) 17. Which category do you expect to grow the most in the next three years? Select one. –Institutional Consultant Recommended Actions to Retain Assets in the Plan Educating participants and partial distributions are top recommended actions Add retirement education/tool 100% 85% Allow distribution flexibility (e.g., partial and installment payments) 86% 89% Allow consolidation of non-plan assets (e.g., IRA roll-in) 86% 52% Offer personalized advice/investment experience 71% 37% Communicate value of staying in plan (e.g., update separation package to explain value of… 43% 78% Add retiree-focused investment options 43% 67% Institutional Consultant (n=27) Aggregator (n=7) 38. Which actions do you recommend plan sponsors take to encourage retirees to retain their assets in the plan? Select all that apply. Perspective on Managed Accounts While consultants believe personalization adds value, only 11% believe participants add sufficient personal data in managed account tools Similar to age, recordkeeping systems contain additional participant data that can help personalize portfolios without requiring the costs and engagement associated with ongoing participant engagement 11% 44% 30% 11% 4% Participants regularly add and keep current personal data in managed account tools 0% 11% 19% 41% 30% Strongly agree Somewhat agree Neither agree nor disagree Somewhat disagree Strongly disagree 10. Regarding personalization, how much do you agree or disagree with the following statements? –Institutional Consultants (n=27) Key Findings Download PIMCO’s DC Consulting Study key findings report for the latest trends and supporting data.
