Defined contribution plans should target replacing about 60 percent of final pay—excluding Social Security—for retirees who don’t have a defined benefit plan or a retiree medical program, say plan consultants in a recent PIMCO poll.
The 60 percent figure is the median, with half of the consultants urging defined contribution plans to aim for a higher figure and half for a lower amount.
About twice as many of the consultants actively promote their online retirement tools compared to pushing their in-person advice offerings (56 percent versus 30 percent).
Nearly four times as many rated active management as very important or important for small-cap equities than large-cap equities (86 percent versus 21 percent).
Only 2 percent of the consultants said active management was not important for non-U.S. bonds and equities.
The consultants noted baby boomers were at a substantially greater risk of being hurt by market declines than workers in their 20s and 30s.
The report is the result of a poll of 66 defined contribution consultants from around the country managing over $4 trillion in client assets for more than 11,000 plan sponsors.