Press release
T. ROWE PRICE STUDY FINDS RETIREMENT INCOME AND PERSONALIZATION ARE TOP OF MIND FOR CONSULTANTS AND ADVISORS
Annual Defined Contribution Consultant Study highlights viewpoints on key retirement trends and investment themes from 35 of the nation's leading consultant
About this update from T. Rowe Price Group, Inc.
[{"type":"text","content":"Annual Defined Contribution Consultant Study highlights viewpoints on key retirement trends and investment themes from 35 of the nation's leading consultant and advisory firms\nBALTIMORE, Sept. 17, 2024 /PRNewswire/ -- T. Rowe Price, a global investment management firm and a leader in retirement, today released findings from its 2024 Defined Contribution Consultant Study. The findings capture the latest perspectives from defined contribution (DC) consultants and advisors on target date solutions, retirement income, investment trends, and financial wellness programs. Additionally, this year's study explores respondents' thoughts on managed accounts, alternative investments, and the value of active versus passive management. \n\nThe annual research suggests more DC plan sponsors are taking a stance on retirement income. In 2021, consultants and advisors described greater than half (59%) of their DC plan sponsor clients as not having a stated opinion on retirement income. In 2024, this same figure declined to 19%. While not all plan sponsors are prioritizing retirement income, they are significantly more likely today to have a view on retirement income compared to prior years.\nAnother key finding highlighted that personalization is perceived as particularly beneficial as participants approach retirement, and there is strong support for managed accounts as an opt-in option offered on the investment menu. However, it seems unlikely that managed accounts will surpass target date solutions as the most common qualified default investment alternative (QDIA).\nSeveral additional themes emerged from the study, including:\nConsultant and advisor perspectives on fixed income and capital preservation investments broadly are shifting as interest rates rise post-global pandemic. Findings show 89% of respondent firms have a \"greater focus on diversification opportunities,\" when evaluating fixed income investment options compared to 48% in 2021.Results show support for adding or increasing an allocation to non-traditional bonds within target date solutions. Furthermore, when evaluating consultant and advisor implementation preferences for fixed income strategies, return-seeking fixed income approaches are consistently viewed as best implemented using active management (e.g., bank loans, emerging markets debt, high yield, and international or g...