Consultants and plan sponsors are seeking broader access to fixed income markets, as traditional core bond offerings alone are not fully representative of opportunity set.
Over half of institutional consultants anticipate that a majority of their plan sponsor clients will add active non-core fixed income options, while 45% expect increased adoption of multi-asset inflation hedging strategies to investment menus, according to the 20th Annual Defined Contribution (DC) Consulting Study conducted by PIMCO, a global leader in active fixed income with expertise across public and private markets.
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“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, Managing Director and PIMCO’s Head of Retirement.
“Fixed income markets have changed significantly over the last decade, but most DC plan menus still reflect a narrower, legacy opportunity set. 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 in order to better navigate today’s market environment and improve long-term retirement outcomes,” said Rene Martel, Managing Director and PIMCO’s Head of Retirement.
In addition to active non-core fixed income and multi-asset inflation, consultants also highlighted strong interest in adding private credit in asset allocation solutions. About half of consultants and 91% of aggregators ranked private credit among the most likely private assets to be added in the near term, according to the survey where responses were collected from January 5 through February 16, 2026.
The 2026 study captures data, trends and opinions from 36 consulting and advisory firms who serve over 53,000 clients with aggregate DC assets in excess of $10.2 trillion as of the date survey responses were collected.
Other survey findings:
- The study finds that nearly 80% of consultants and advisors expect plan sponsors to move toward blended target-date funds (TDFs), which combine active and passive management, as the new default strategy. Sponsors are also willing to pay a premium fee more for active bond strategies, reflecting confidence in active management where it may add value.
- In parallel, demand for more tailored solutions continues to grow. Nearly half (46%) of aggregator firms anticipate increased adoption of fully customized TDFs, while 85% expect rising interest in participant-personalized TDFs as next-generation defaults.
- All aggregator firms surveyed expect at least some plan sponsors to introduce private market exposure within target-date funds or managed accounts over the next 12 months, up from 37% in last year’s study. A majority of institutional consultants (57%) report similar expectations. As adoption expands, consultants and advisors emphasize balancing return potential with asset quality, cost, and maintaining adequate liquidity to meet DC daily needs.
- Retirement income is emerging as a core component of DC plan design. More than half (52%) 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. Target-date funds incorporating built-in annuities are increasingly viewed as a key innovation area, signaling a shift from accumulation-focused design to income-oriented outcomes.
- DC intermediaries are competing on participant services, with aggregators investing heavily in education and guidance. About 93% of aggregators now offer one-on-one financial planning versus 30% of consultants. Most consultants continue to rely on third parties, underscoring a widening divide in how firms position themselves as retirement partners.
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