Consultants to defined contribution plans expect to see increased coverage and savings as a result of the SECURE Act and are generally upbeat about new plan sponsors joining multiple employer plans, according to T. Rowe Price's inaugural study of the industry's largest consultants.
The study rated views of the top 20 consultants on the likelihood of changes under the SECURE Act on a scale of 1 to 4, with 1 being the least likely and 4 being the most likely. Consultants rated the likelihood of increased coverage at 3.2, while rating the prospect of new sponsors joining MEPs at 3.1.
They weren't as optimistic about more plans offering in-plan annuities, rating it a 2.6, and even less optimistic about existing plan sponsors joining MEPs, rating it 2.3.
Nevertheless, 78.9% of consultants expect retirement income solutions to increase the most among investment services, followed by the growth of managed accounts, according to the study.
The 20 defined contribution consulting firms were surveyed Jan. 7-Feb. 13 and April 8-21. The study was conducted in partnership with Schaus Group.