T. ROWE PRICE STUDY REVEALS DC CONSULTANTS' EVOLVING VIEWS ON PRIVATE ASSETS, RETIREMENT INCOME, AND MANAGED ACCOUNTS
T. ROWE PRICE STUDY REVEALS DC CONSULTANTS' EVOLVING VIEWS ON PRIVATE ASSETS, RETIREMENT INCOME, AND MANAGED ACCOUNTS |
| [09-September-2025] |
Annual Defined Contribution Consultant Study captures viewpoints on key retirement trends and investment themes from 36 of the nation's leading consultant and advisory firms BALTIMORE, Sept. 9, 2025 /PRNewswire/ -- T. Rowe Price, a global asset management firm and a leader in retirement, today released its 2025 Defined Contribution (DC) Consultant Study, which reflects viewpoints from 36 top DC consultants and advisors. Key themes include expectations for the implementation of alternative assets in DC plans; target date solutions evolving to incorporate retirement income; managed account use and positioning; and renewed interest in capital preservation investment options in a shifting rate environment.
As the retirement industry contemplates a potential role for alternative assets in DC plans, survey results show consultants and advisors expect target date solutions—custom or off-the-shelf—to be the primary vehicle for implementation. Furthermore, respondents anticipate little support for offering alternative investment strategies as stand-alone options in a plan. When asked to indicate which alternatives are most likely to be incorporated into DC plans over the next 12–24 months, data revealed a noteworthy year-over-year increase in average expectations for implementation of private credit and private equity. Fees were identified by 72% of respondents as a barrier to implementation of alternative investments in DC plans, followed by liquidity concerns (44%), and operational complexity (39%). Retirement income services and products continue to slowly gain traction, while the landscape has become increasingly complex. Respondents indicated a significantly lower percentage of their DC plan clients do not have an opinion on retirement income, compared to four years ago. Consultants and advisors identify a systematic withdrawal as the preferred feature for delivering income to retired DC plan participants, garnering an average rating of 3.2 on scale of 1-4, 4 representing most appealing. From there, respondents assigned the highest average rating to target date solutions that incorporate retirement income, like partial annuitization or a managed payout capability. Consultants and advisors are also focused on managed accounts and their ability to offer a more personalized investment experience. Results showed more than one-third (37%) of respondents offer a proprietary managed account solution, which is most commonly positioned as an opt-in option on the investment menu. There is also neutral to slightly positive support to use managed accounts in dynamic QDIAs, where participants are initially defaulted into target date solutions and at a later age are re-defaulted into a managed account. Respondent firms expect renewed interest in revisiting plans' existing capital preservation investment options, reigniting the debate between stable value and money market funds. This is primarily motivated by today's evolving interest rate environment, which has created an atypical situation where money market fund yields are outpacing stable value crediting rates—a dynamic that has only occurred two other times over the past 29 years1. Furthermore, the data reflects some interest in how best to use capital preservation products like stable value in other investment options, such as target date solutions, managed accounts, and retirement income products. "Results from the 2025 DC Consultant Study depict an industry poised for change. We see this reflected in consultants' and advisors' evolving views on private assets in DC plans, to their consideration of target date solutions that can support participants in both the savings and spending phase, and to exploring the role of managed accounts and advice," said Jessica Sclafani, Global Retirement Strategist T. Rowe Price. "Our findings show that consultants and advisors stand ready to expand their product and service offerings to support plan sponsors in navigating an increasingly complex landscape – both from investment and regulatory perspectives." Additional key findings include:
More details on the findings are included in the executive summary, which can be found here. "At T. Rowe Price, our research is driven by a spirit of curiosity and a commitment to uncovering deeper insights," said Michael Davis, Head of Global Retirement Strategy at T. Rowe Price. "Our annual DC Consultant Study helps us keep a pulse on where we are and where the industry is headed. By capturing the perspectives of leading consultants and advisors, we are better equipped to anticipate emerging trends and empower our clients to make more informed decisions and confidently adapt to an ever-changing landscape." ABOUT THE DEFINED CONTRIBUTION CONSULTANT STUDY ABOUT T. ROWE PRICE Visit troweprice.com/newsroom for news and public policy commentary. 1 Sources: Lipper Inc. and Morningstar, Inc.
SOURCE T. Rowe Price Group | ||
Company Codes: NASDAQ:TROW,NASDAQ-GS:TROW |
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