Search

Retire with Confidence©

2024 U.S. Retirement Market Outlook


Three themes shaping the retirement landscape

Looking into 2024, retirement income, personalization, and diversification will be key themes for DC plan sponsors and their consultants and advisors. We explore why we expect these topics to shape the retirement landscape, outline the underlying factors that are creating challenges and opportunities for the industry, and provide action items to consider. 

Retirement Income

Growing demand could drive innovation and adoption of retirement income solutions.

What's changed

Growing demand and supportive legislation could impact the landscape of in-plan versus out-of-plan solutions

What's next

Look for continued innovation in product design beyond guaranteed solutions

What to keep an eye on

We're watching the adoption rates of in-plan investment and insurance income solutions

Evolving from an exploratory to a decision-oriented posture

Data suggest that more plans, consultants, and advisors are taking a position on retirement income:

Sources: T. Rowe Price, 2023 Defined Contribution Consultant Study; 2021 Defined Contribution Consultant Study. 

Personalization

Targeted experiences can drive behavioral change and improve retirement outcomes.

What's changed

A diverse workforce needs targeted communications and personal savings and wellness solutions

What's next

Financial wellness programs could be the top area for the future growth in non-investment services

What to keep an eye on

The growth of personalized management solutions can help keep assets in plan

Participants need help with financial basics, planning, and investing

The importance of workplace financial solutions to participants:

Sources: T. Rowe Price Retirement Savings and Spending Study, 2023. Numbers may not total due to rounding. 

Diversification

A complex market environment sharpens focus on diversification opportunities.

What's changed

Tighter monetary policy, stubborn inflation, and high interest rates require a  reassessment of fixed income allocations

What's next

Look beyond U.S. investment-grade bonds to supplement core fixed income allocation and consider other sectors, such as high yield, bank loans, and emerging markets debt

What to keep an eye on

Active management to be key for fixed income diversification

Market environment sharpens focus on fixed income

Concerns about interest rates and inflation are top of mind for plan sponsors and consultants:

Sources: T. Rowe Price, 2023 Defined Contribution Consultant Study; 2021 Defined Contribution Consultant Study. Percentages represent the portion of respondents who selected the respective factors listed on the left of the chart. 

Recent Retirement Insights

Explore our proprietary retirement research focused on insights from plan sponsors, participants, and consultants.

©2023 T. Rowe Price. All rights reserved. T. ROWE PRICE, INVEST WITH CONFIDENCE, and the Bighorn Sheep design are, collectively and/or apart, trademarks of T. Rowe Price Group, Inc. RETIRE WITH CONFIDENCE is a trademark of T. Rowe Price Group, Inc.

202311-3234369

Download

Latest Date Range
Audience for the document: Share Class: Language of the document:
Download Cancel

Download

Share Class: Language of the document:
Download Cancel
Sign in to manage subscriptions for products, insights and email updates.
Once registered, you'll be able to start subscribing.

Change Details

If you need to change your email address please contact us.
Subscriptions
OK
You are ready to start subscribing.
Get started by going to our products or insights section to follow what you're interested in.

Products Insights

GIPS® Information

T. Rowe Price ("TRP") claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. T. Rowe Price has been independently verified for the twenty four-year period ended June 30, 2020, by KPMG LLP. The verification report is available upon request. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. Verification does not provide assurance on the accuracy of any specific performance report.

TRP is a U.S. investment management firm with various investment advisers registered with the U.S. Securities and Exchange Commission, the U.K. Financial Conduct Authority, and other regulatory bodies in various countries and holds itself out as such to potential clients for GIPS purposes. TRP further defines itself under GIPS as a discretionary investment manager providing services primarily to institutional clients with regard to various mandates, which include U.S, international, and global strategies but excluding the services of the Private Asset Management group.

A complete list and description of all of the Firm's composites and/or a presentation that adheres to the GIPS® standards are available upon request. Additional information regarding the firm's policies and procedures for calculating and reporting performance results is available upon request

Other Literature

You have successfully subscribed.

Notify me by email when
regular data and commentary is available
exceptional commentary is available
new articles become available

Thank you for your continued interest