2019 PIMCO Defined Contribution Consulting Study
Providing retirement income potential, evaluating TDFs and plan costs, and simplifying investment menus are key.
Retirement income takes center stage in our latest annual survey of large- and mid-sized industry consultants . Six in 10 say plan sponsors wish to keep retirees invested in their plans – nearly a third higher than last year. The survey indicated retention depends chiefly on providing distribution flexibility, education and tools, and retiree-focused investment options.
Plan sponsors turn to consultants mainly for evaluation of target-date funds and plan costs, and simplification of the investment menu. The singular focus on fees may be waning.
Consultants say white label and custom target-date fund strategies are critical to constructing potentially superior portfolios. Consultants also report strong support for active management in both U.S. and non-U.S. bond strategies and emerging market equities.
From a business perspective, consultants face a high degree of overlap in the services they provide, making differentiation critical to success. The fastest-growing requests include cost and fee analyses, record keeping searches and manager selection services.
For more on the PIMCO DC Consulting Study, download the Key Findings Report now.