DC plan sponsors are turning their attention to retirement income
Plan sponsors are increasingly focusing on retirement income solutions for their clients, according to a new survey by Pimco.
The bond giant’s 18th Annual Defined Contribution Consulting Study, which polled 28 consultants and advisory firms managing over $5 billion in defined contribution assets, revealed that nearly 90 percent of large institutional consultants consider income generation during retirement their top priority. This marks a 21 percent increase from the previous year.
Pimco’s new survey, which highlights the growing importance of income solutions as plan participants’ demographics evolve, polled firms serving more than 15,000 clients, capturing a wide range of industry perspectives and available services.
The results indicate a strong trend towards retaining assets of workers once they retire, with approximately two-thirds of respondents noting this preference among their clients.
Rene Martel, managing director and head of retirement at PIMCO, emphasized the ongoing focus on retirement income.
“The focus on retirement income continues to be a theme that is top of mind for consultants and their clients,” Martel said in a statement.
Plan sponsors responding to the survey showed unanimous support for offering investments and services tailored for retirees, with over half already implementing or planning to implement such plans. They’re also enhancing their retirement income solutions through improved plan design, education, and expanded investment options for retirees.
Non-guaranteed income solutions were attractive to many plan sponsors, with 75 percent of respondents cited the need to meet diverse needs with various options as a top reason for considering these solutions. Additionally, 57 percent highlighted
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