Looking into 2024, retirement income, personalization, and diversification will be key themes for DC plan sponsors and their consultants and advisors. In this video series, our retirement experts weigh in on the underlying factors creating both challenges and opportunities for DC plan sponsors and their consultants and advisors this year.
Michael Doshier, Senior Retirement Strategist
Michael Davis, Head of Global Retirement Strategy
Jessica Sclafani, CAIA, Senior DC Strategist
Aliya Robinson, Head of Legislative and Regulatory Affairs
A surge in retirees and a complex market environment are creating new challenges for retirement savers. We are closely watching these themes impacting the U.S. retirement industry.
Help plans and participants achieve better outcomes—with personalized support and dynamic solutions from a retirement leader.
Growing demand and supportive legislation that could drive adoption of in-plan solutions
Continued innovation in product design beyond guaranteed solutions
Threat of litigation that could affect adoption of innovative solutions
Data suggest that more plans, consultants, and advisors are taking a position on retirement income:
Source: T. Rowe Price, 2023 Defined Contribution Consultant Study; 2021 Defined Contribution Consultant Study.
Diverse workforce needs targeted communications, savings and wellness solutions
Financial wellness programs could be the top area for future growth in non-investment services
Growth of personalized managed solutions can help keep assets in plan
The importance of workplace financial solutions to participants:
Source: T. Rowe Price Retirement Savings and Spending Study, 2022.
Numbers may not total due to rounding.
The changing economic environment requires reassessment of fixed income
Look beyond U.S. investment-grade bonds to supplement core fixed allocation and consider other sectors, such as high yield, bank loans, emerging markets debt
Active management to be key for fixed income diversification
Factors that influence evaluation of strategies with a goal of capital preservation and/or fixed income investment options in plan
Fixed Income | Capital Preservation | ||||||
2021 | 2023 | Change | 2021 | 2023 | Change | ||
Current interest rate environment | 89% | 81% | -8 | 89% | 94% | +5 | |
Greater focus on diversification opportunities | 48 | 81 | +33 | 33 | 29 | -4 | |
Interest rate expectations | 81 | 77 | -4 | 74 | 71 | -3 | |
Inflation concerns | 70 | 74 | +4 | 48 | 68 | +20 | |
Poor performance | 26 | 52 | +26 | 19 | 36 | +17 |
Source: T. Rowe Price, Defined Contribution Consultant Study; 2021 Defined Contribution Consultant Study.
Percentages represent the portion of respondents who selected the respective factors listed on the left side of the chart.
877.561.7670
AdvisorServices@troweprice.com
800.831.1370
RetirementPlanSupport@troweprice.com
800.371.4613
DCIO_Sales_Desk@troweprice.com
855.829.5343
VA_Sales_Desk@troweprice.com
Source information:
T. Rowe Price research shared throughout this report as "our research" was compiled from the sources listed on page 13 of the full article.
202405-3592152