2025 Defined Contribution Consultant Study
Methodology at a glance
36
$8.9+
70%
Key Insights
Growing role of artificial intelligence (AI)
Practical use cases are beginning to emerge to enhance business growth, client service, and scalability. Firms integrating AI are discovering efficiencies and innovative ways to differentiate themselves.
Emphasis on diversification within fixed income
Findings show growing support for the use of nontraditional bonds in target date portfolios and potential interest in including private credit in multi-asset, professionally managed portfolios.
Capital preservation options in focus
The debate between stable value and money market has been reignited. Consultants expect increased interest in reviewing plans’ existing investment options due to an evolving interest rate environment.
Potential role for alternative investments in target dates
Findings reflect the retirement industry’s shift toward a more focused approach on private assets, particularly in private credit. Most respondents agree that implementation will take place within target date solutions.
Target date solutions continue to evolve
Respondent firms strongly support nontraditional bonds in target date solutions, emphasizing fixed income diversification. Both active and passive strategies are favored for cost-effective, balanced target date solutions.
Managed accounts grow as opt-in option
Greater than one-third of respondent firms offer proprietary managed account solutions. These are more likely to be offered by advisor firms and often positioned as opt in. There is neutral to slightly positive support for use of a dynamic QDIA, with greater conviction from advisors.
Retirement income slowly gaining traction
Consultants and advisors report each year that more plans have a defined stance on retirement income. This year, one in four DC plans is considering or currently offering retirement income solutions, up from nearly one in five DC plans in 2021.
Expectations for financial wellness growth
The full range of financial wellness solutions, provided inside and outside employer-sponsored retirement plans, is expected to see increased adoption, driven by employees’ nearer-term financial needs, their desire for support, and SECURE 2.0 provisions.
2025 Defined Contribution Consultant Study
Explore a full summary of this year's findings.
2025 Participating Firms
Aon | Callan LLC | Cambridge Associates | CAPTRUST | Cerity Partners | Clearstead | Commonwealth | Curcio Webb | Fiducient Advisors | Francis Investment Counsel | Goldman Sachs Asset Management | Gosselin Consulting Group | Higginbotham | Highland Associates | Highland Consulting Associates, Inc. | HUB RPW | Intellicents | LCG Associates, Inc. | Marquette Associates, Inc. | Marsh McLennan Agency | Meketa Investment Group | Mercer | MSWM/Graystone | NEPC, LLC | Newport Group, Inc. | NFP Retirement | OneDigital | PlanPILOT | Russell Investments | RVK, Inc. | SageView | Segal Marco Advisors | USI | Verus | Willis Towers Watson | Wilshire
Additional reading based on the insights above
In the Spotlight
Five must-ask questions about private assets in DC plans
From the Field
Navigating the evolving landscape of target date solutions
Contact us
1Assets under advisement figures are self-reported.
2Source: ICI, as of December 31, 2024.
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