2024 PIMCO US Defined Contribution Consulting Study

Understanding the New Defined Contribution Landscape

In its 18th 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.

28 Consulting and Aggregator Firms*

Who Serve Over 15,000 Clients*

Representing In Excess of $7.94 Trillion in DC Assets*

^*All responses were collected from January 8, 2024 through February 26, 2024.

Retirement Income Investments and Services

Unanimous support for offering investments and services for retirees; more than 50% of plans have already implemented or plan to.

A bar chart shows the data from the answers to the following question: What percent of your clients are in each stage of implementing investments and services which allow retired participants to remain in the plan and support their retirement spending needs? (n=27). The answers are as follows: Have already implemented – 30%; in the process of implementing – 10%; plan to implement – 20%; have not considered implementing – 28%; do not plan to implement – 11%.

Implementation State For Clients

38. What percent of your clients are in each stage of implementing investments and services which allow retired participants to remain in the plan and support their retirement spending needs? (n=27)

New Plan Investment Options for Retirees

While most consultants continue to evaluate new retirement-focused investment options, a third are recommending new options or repurposing existing strategies to meet retiree needs.

A bar chart shows the data from the answers to the following question: Do you recommend adding new plan investment options specifically to cater to retiree needs? (n=28). The answers are as follows: Yes, I recommend adding new, retiree-focused investment options to plans – 18%; Currently evaluating new investments designed for retired participants to determine if such offerings are complementary to existing designed options – 64%; No, the current options (at-retirement TDF, Stable Value, etc.) sufficed as good options for retirees – 18%.

44. Do you recommend adding new plan investment options specifically to cater to retiree needs? (n=28)

Plan Sponsor’s Top Reasons for Considering Non-Guaranteed Retirement Income Solutions

Lower cost, less complexity, increased liquidity and flexibility cited as top reasons.

A bar chart shows the data from the answers to the following question: What are the top reasons why plan sponsors have considered or implemented non-guaranteed retirement income solutions? Rank all in order of importance, where 1= most important. (n=28). The answers are as follows: Want to provide participants a range of options to meet diverse retirement needs – 75% ranked this 1-3, and 11% ranked this number 1; Prefer the liquidity and flexibility of a non-guaranteed product – 57% ranked this 1-3, and 21% ranked this number 1; Lower cost and complexity of non-guaranteed products – 57% ranked this 1-3, and 18% ranked this number 1; Have not considered a non-guaranteed product – 21% ranked this 1-3, and 18% ranked this number 1.

43. What are the top reasons why plan sponsors have considered or implemented non-guaranteed retirement income solutions? Rank all in order of importance, where 1 = most important. (n=28)

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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.

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 LLC in the United States and throughout the world.

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