2024 MFS DC Plan Sponsor Survey: Building Better Outcomes
How confident are plan sponsors in their participants’ ability to retire comfortably?
The latest MFS DC Plan Sponsor Survey captures insights from 166 U.S. plan sponsors managing over $125 billion in assets and covering more than 1.1 million participants1. Complemented by perspectives from over 4,000 plan participants and retirees globally, this report examines key trends shaping the defined contribution (DC) landscape and identifies gaps between employer strategies and employee expectations.
Key Insights from the Report
- Plan Sponsor Confidence is Low: Only 18% of plan sponsors are very or extremely confident their participants will retire when they want to—compared to 36% of participants who feel the same.
- Retirement Income Remains a Challenge: While 48% of plan sponsors are exploring in-plan retirement income solutions with their consultants, only 9% are extremely likely to implement one in the next 12–18 months.
- Investment Menus Are Evolving: 87% of plans use target date funds (TDFs) as their QDIA, but sponsor priorities don’t always align with participant preferences when selecting investments.
Introducing the MFS Workplace Retirement Readiness Indicator (WRRI):
A new proprietary confidence score that helps measure plan sponsor confidence in participant retirement readiness. This year’s average score? C+, signaling room for improvement.
What This Means for You
The survey highlights actionable opportunities for plan sponsors to improve retirement confidence, including:
✔ Optimizing plan design to drive engagement and deferral rates
✔ Reevaluating investment menus to align with participant needs
✔ Enhancing access to advice to support personalized retirement strategies
Discover how plan sponsors can drive better retirement outcomes.
In 1924, MFS launched the US' first open-end mutual fund. More than 100 years later, we are a full-service global investment manager serving financial advisors, intermediaries, and institutional clients around the world. Our time-tested, active investing approach combines collective expertise, long-term discipline and thoughtful risk management to uncover what we believe are the best investment opportunities in the public markets.
