Background: The DCIIA RRC conducted a focused survey to better understand the evolving role of collective investment trusts (CITs) in defined contribution (DC) plans. Fielded in late 2024, the survey captured input from industry professionals - including consultants, advisors, asset managers, recordkeepers, and trustees - who shared perspectives on CIT adoption, benefits, barriers, and expected innovations. This paper is the first in a three-part series on CITs. Many thanks to the RRC’s CIT working group for supporting and guiding these efforts.

Findings: Sentiment around CITs is broadly positive across the DC ecosystem. The majority of respondents agreed on four central points:

CITs are an essential platform for future DC innovation. Their flexible structure allows for ongoing development, including lifetime income and hybrid retirement income solutions.

CIT adoption is expected to accelerate. Most industry professionals anticipate a continued shift toward CITs across plan sizes as awareness and operational capabilities expand.

Cost and customization are primary advantages. Respondents highlighted lower fees and greater flexibility to meet plan needs.

Adoption barriers persist, particularly among smaller and mid-sized plans. Concerns around oversight, transparency, and operational complexity continue to limit broader uptake. Education gaps and plan sponsor unfamiliarity were cited as notable challenges.

The study also revealed growing interest in CIT structures to support decumulation strategies, as well as a potential expansion of CIT usage in advisor-led plans.

Source: DCIIA RRC, 2025

Bottom line: CITs are positioned to play an increasingly central role in the future of DC plan design—offering a path to more cost-effective, customizable, and innovative investment solutions. However, plan sponsors—especially at the smaller end of the market—require targeted education and support to overcome lingering misconceptions and operational concerns.

Over time, the market is likely to see deeper penetration of CITs across all plan segments. CITs may also emerge as a preferred vehicle for delivering retirement income solutions, given their structural flexibility and pricing advantages.

Building on these insights, the RRC is finalizing a second paper, providing a comprehensive review of the “ABCs of CITs,” that will be published shortly. A third piece will provide a point of view spanning the full body of work, incorporating interviews with trustees, asset managers, recordkeepers, and database providers to provide a well-rounded perspective on the role and potential of CITs in the DC ecosystem.

Visit the report landing page for links to a report summary (available to all) and the full report and related PowerPoint deck (RRC and PSI members only).