More than half of institutional consultants expect most of their plan sponsor clients to add active non-core fixed income options to retirement menus, according to PIMCO's 20th Annual Defined Contribution Consulting Study. The survey also found 45% of consultants anticipate increased adoption of multi-asset inflation hedging strategies.
"Fixed income markets have changed significantly over the last decade, but most DC plan menus still reflect a narrower, legacy opportunity set," said Rene Martel, PIMCO's Head of Retirement. "What we're seeing in this study is a clear shift: consultants and plan sponsors recognize that participants need access to a broader range of fixed income solutions."
The study, which collected responses from 36 consulting and advisory firms representing over $10.2 trillion in DC assets between January 5 and February 16, 2026, highlighted several trends. Nearly 80% of consultants expect plan sponsors to move toward blended target-date funds that combine active and passive management. About half of consultants and 91% of aggregator firms ranked private credit among the most likely private assets to be added to menus. Demand for customized target-date funds is rising, with 46% of aggregators anticipating increased adoption of fully customized TDFs and 85% expecting interest in participant-personalized TDFs.
Retirement income is becoming a core component of plan design. More than half of plans working with consultants already offer in-plan retirement income solutions, and 93% of aggregators plan to add such options within the next year. The study also found that aggregators are investing heavily in participant education and guidance, with 93% offering one-on-one financial planning.
Photo: Cht Gsml via Unsplash. Photo is illustrative and not from the scene.
Log in as a subscriber to comment, or become a member.