Background: In 2024, the DCIIA RRC conducted two online recordkeeper surveys to better understand their retirement income and distribution capabilities. Eighteen recordkeepers were surveyed with a large range of participants and assets under management. This week’s Research Minute, part two of the series, will more closely examine the partnerships and solutions that recordkeepers are implementing.

Findings: Sixty five percent of recordkeepers are implementing proprietary solutions that can be used by multiple clients, with 47% of recordkeepers focusing on “coopetition” to bring in strategic partners; 53% leveraging external providers (such as fintechs or dedicated technology firms); and 39% using both. These partnerships aid cost-effective outsourcing and shared resources amid an environment of limited bandwidth and fee pressures.

Further, nearly 75% of recordkeepers with $100B-$400B AUM are leveraging external providers. Recordkeepers with assets greater than $300B AUM have access to custom solutions, but these types of solutions remain limited.

Bottom Line: There is a significant burden on recordkeepers in managing the technical demands of implementing and maintaining new retirement income solutions. To address these challenges, recordkeepers are adopting strategies such as developing proprietary

solutions that can serve multiple clients, forming strategic partnerships, and leveraging external technology providers. Next week’s Research Minute will more closely examine technological development needs.

See last week’s Research Minute, "How are recordkeepers adapting retirement income strategies for the future? (part one)"