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2024 Defined Contribution Consultant Study

Discover key insights from T. Rowe Price's fourth annual study that captures views from the U.S. DC consultant and advisor community.

2024 Participating Firms

The 35 firms that participated represent over $7.5 trillion in AUA.1 The study was fielded January 12–March 4, 2024.

Aon | Buck, A Gallagher Company | Callan LLC | Cambridge Associates | CAPTRUST | Cerity Partners | Clearstead | Commonwealth | Curcio Webb | Fiducient Advisors | Francis Investment Counsel | Goldman Sachs Asset Management | Higginbotham | Highland Associates | Highland Consulting Associates, Inc. | HUB RPW | LCG Associates, Inc. | Marquette Associates, Inc. | Meketa Investment Group | Mercer | MSWM/Graystone | NEPC | Newport Group, Inc. | NFP Retirement | OneDigital | QPA | Russell Investments | RVK, Inc. | SageView Advisory | Segal Marco Advisors | UBS | USI | Verus | Wilshire | WTW

Key Insights

This study covers four broad retirement-related themes: target date solutions, retirement income, investment trends, and financial wellness programs. In 2024, we also explored new topics of inquiry, including views on managed accounts, alternative investments, and the value of active versus passive management.

A focus on fees shines light on CITs and blend target date solutions. And managed accounts have a potentially expanding role but are unlikely to be assigned as the QDIA.

Target date solutions offered in a CIT vehicle and constructed with both active and passive strategies were the most strongly supported development, enhancement, or modification related to target date solutions or other qualified default investment alternatives. Consultant and advisory firms indicated that their plan sponsor clients are most likely to offer managed accounts as an opt-in option on the investment menu.

Team target or achievement, teamwork or leadership to lead to achieve goal, business direction or success, career path or growth concept, business people coworkers walking up arrow to reach target.

More plans are taking a stance on retirement income, and there is a preference for multi-asset, total portfolio solutions with retirement income as a component.

The top five most appealing strategies or solutions for the delivery of retirement income include simply systematic withdrawal, managed account (with income-planning feature), target date investment with managed payout feature (non-insured), standalone managed payout investment, and target date investment with embedded annuity feature.

Teamwork and cooperation in a business setting, idea that working together can lead to success, collaboration or synergy concept, businessman push gear cogwheels together leading to success.

Higher rates are likely to spur increased fixed income and capital preservation activity.

Consultants and advisors are most focused on identifying opportunities for diversification within fixed income as an asset class. Furthermore, the current interest rate environment and expectations for how it may change are cited as top areas of interest.

Protection or defensive stock in economy crisis or market crash, business resilient to survive difficulty or insurance concept, businessman holding umbrella to cover and protect from downturn arrow.

Active and passive investment beliefs evolve, the industry considers alternative investments, and ESG challenges continue.

Primary drivers of increased use of passive management are focus on cost and fear of litigation. Despite discussion in the marketplace, results suggest that it is unlikely alternatives will become broadly offered in DC plans. Over two-thirds of respondents say ESG integration is the best method of implementation within DC plans. But the evolving regulatory and legislative development remains challenging.

Financial wellness findings: Accumulation savings goals are most important, but emergency savings is a topic of increasing emphasis.

Consultants and advisor firms were asked to rate which financial wellness topics matter most to plan sponsors, and results point to continued emphasis on accumulation or savings-focused goals, such as determining how much to save and measuring progress against this goal. Building an emergency savings reserve also rose to the top as “very important.”

Grow business increase sales and profit, growth or progress to achieve goal and target, improve or development to boost performance concept, business people team looking at high rising up graph arrow.
By  Wyatt Lee, Kim DeDominicis, Andrew Jacobs Van Merlen
By  Berg Cui, Jessica Sclafani

1Assets under advisement figures are self-reported.

Important Information

This material is being furnished for general informational and/or marketing purposes only. The material does not constitute or undertake to give advice of any nature, including fiduciary investment advice. Prospective investors are recommended to seek independent legal, financial, and tax advice before making any investment decision. T. Rowe Price group of companies including T. Rowe Price Associates, Inc, and/or its affiliates receive revenue from T. Rowe Price investment products and services. Past performance is not a reliable indicator of future performance. The value of an investment and any income from it can go down as well as up. Investors may get back less than the amount invested.

The material does not constitute a distribution, an offer, an invitation, a personal or general recommendation, or solicitation to sell or buy any securities in any jurisdiction or to conduct any particular investment activity. The material has not been reviewed by any regulatory authority in any jurisdiction.

Information and opinions presented have been obtained or derived from sources believed to be reliable and current; however, we cannot guarantee the sources’ accuracy or completeness. There is no guarantee that any forecasts made will come to pass. The views contained herein are as of the date written and are subject to change without notice; these views may differ from those of other T. Rowe Price group companies and/or associates. Under no circumstances should the material, in whole or in part, be copied or redistributed without consent from T. Rowe Price.

The material is not intended for use by persons in jurisdictions which prohibit or restrict the distribution of the material and in certain countries the material is provided upon specific request. It is not intended for distribution to retail investors in any jurisdiction.

USA—Issued in the USA by T. Rowe Price Associates, Inc., 100 East Pratt Street, Baltimore, MD 21202, which is regulated by the U.S. Securities and Exchange Commission. For Institutional Investors only.

© 2024 T. Rowe Price. All Rights Reserved. T. ROWE PRICE, INVEST WITH CONFIDENCE, and the Bighorn Sheep design are, collectively and/or apart, trademarks of T. Rowe Price Group, Inc.

202409-3798481

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GIPS® Information

T. Rowe Price ("TRP") claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. T. Rowe Price has been independently verified for the 27-year period ended June 30, 2023, by KPMG LLP. The verification report is available upon request. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. Verification does not provide assurance on the accuracy of any specific performance report.

TRP is a U.S. investment management firm with various investment advisers registered with the U.S. Securities and Exchange Commission, the U.K. Financial Conduct Authority, and other regulatory bodies in various countries and holds itself out as such to potential clients for GIPS purposes. TRP further defines itself under GIPS as a discretionary investment manager providing services primarily to institutional clients with regard to various mandates, which include U.S, international, and global strategies but excluding the services of the Private Asset Management group.

A complete list and description of all of the Firm's composites and/or a presentation that adheres to the GIPS® standards are available upon request. Additional information regarding the firm's policies and procedures for calculating and reporting performance results is available upon request. 

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