Institutional Consultants vs. Retirement Aggregators: Trends in DC Strategic Priorities
April 9, 2025
What are the top priorities for retirement aggregators (RAs) and institutional consultants (ICs), and what do they mean for plan sponsors? Understand how the retirement landscape is evolving in a post-pandemic environment and how RAs and ICs are adjusting their approach.
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This white paper, produced in partnership with PIMCO, examines the goals of key industry partners across four critical variables: expanding presence upmarket, enhancing OCIO capabilities, expanding investment research capabilities, and merging or acquiring other firms.
Key Takeaways
Expanding Presence Upmarket
DC consultants are primarily focused on the mid-sized market ($25 million—$250 million) but have increasingly focused on the large market ($250 million—$1 billion). Several factors drive this trend, including the greater revenue potential associated with larger plans, the demand for advanced expertise to manage complex investment strategies, and heightened fiduciary concerns and litigation risks.
Enhancing OCIO Capabilities
Cerulli's research finds a growing institutional emphasis among ICs and RAs. In 2021, 34% of ICs and 27% of RAs prioritized enhancing outsourced chief investment officer (OCIO) capabilities. By 2024, 68% of ICs and 67% of RAs affirmed this priority.
Expanding Investment Research Capabilities
ICs and RAs fluctuate when it comes to expanding research capabilities. Several key elements help explain this trend, including rising client expectations for more sophisticated and tailored investment advice, the evolving investment landscape that requires continuous research and adaptation, and a growing focus on retirement income solutions.
Merging or Acquiring Other Firms
There is a significant divergence between ICs and RAs regarding merging with or acquiring other firms. For ICs, this strategy has consistently been a low priority, while for RAs, mergers and acquisitions have consistently registered as a top-two priority.
SUBJECT MATTER EXPERTS
Meet Our Research Team
Elizabeth Chiffer
Senior Analyst
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Elizabeth Chiffer
Senior Analyst
As a senior analyst on the Retirement team, Elizabeth supports research on the defined contribution (DC) and individual retirement account (IRA) markets. She is the lead author of Cerulli's U.S. Retirement End-Investor report, which focuses on the perceptions, needs, and behaviors of DC plan participants. Elizabeth also provides quantitative support to Cerulli’s consulting engagements, annual reports, and the Retirement Edge series.
Prior to joining Cerulli, Elizabeth was a research assistant at the Boston University School of Hospitality Administration, where she worked on papers pertaining to hospitality finance and technology.
Full biography here.
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