When it comes to investing in a defined contribution plan such as a 401(k), employees should start at six percent of income — and employers should be automatically enrolling them. These are just two of the many findings in PIMCO’s 2017 Defined Contribution Consulting Support and Trends Survey, which polled nearly 70 defined contribution consultants and advisors, including Plexus Financial Services LLC.
Overall, the advisors surveyed by PIMCO, a Newport Beach, Calif.-based asset management firm, represent more than 12,000 plan sponsor clients and manage more than $4 trillion in assets.
“It was an honor to be asked to participate in the PIMCO survey among with so many industry-leading retirement-focused firms,” said Allison Winge, Plexus Financial Services practice leader.
Of the advisors surveyed by PIMCO, 98 percent were in favor of auto-enrollment of retirement plan participants, with 94 percent in favor of automatically escalating retirement contributions over time.
In another interesting tidbit, a median number of retirement experts participating in the 2017 Defined Contribution Consulting Support and Trends Survey believe savers should aim to live off of 80 percent of their working income in retirement.
For an overview of the PIMCO survey, please refer to a summary of findings released earlier this year.
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