2024 Defined Contribution Consultant Study

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 qualified default investment alternative (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.

Higher rates 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.

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.”