What's changed
Looking into 2024, retirement income, personalization, and diversification will be key themes for DC plan sponsors and their consultants and advisors. In this video series, our retirement experts weigh in on the underlying factors creating both challenges and opportunities for DC plan sponsors and their consultants and advisors this year.
Michael Davis, Head of Global Retirement Strategy
Jessica Sclafani, CAIA, Senior DC Strategist
Rachel Weker, Senior Retirement Strategist
Aliya Robinson, Head of Legislative and Regulatory Affairs
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
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.
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
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.
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
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.
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