July 2017
Login to MFS.com
For Financial Advisors, RIAs, Analysts, Institutional Clients and Consultants Only
MFS Access
For Shareholders Only
Access your MFS mutual fund, IRA, 529 savings plan accounts, quarterly statements, and sign up for eDelivery.
QuickFacts
- The US retirement funding gap is expected to nearly quintuple over the next 33 years. According to a new report by the World Economic Forum, increasing life expectancy (see graphic below) and a falling birth rate are the primary causes behind the savings gap, but there are five other major contributing factors listed in the report, including low expected investment returns and the high degree of individual responsibility to manage pensions assets.
- Momentum continues for collective investment trusts (CIT) in DC plans. According to Callan’s 2017 Defined Contribution Trends report, 65% of plans offer a CIT in their fund lineup, up from 48% in 2012. Meanwhile, mutual funds have decreased in prevalence from 92% to 84% over the same period.
- Target date fund assets have grown over six times from $116 billion in 2006 to $880 billion in 2016. Target date funds continue to play a critical role in achieving successful retirement outcomes for investors. This year’s Target-Date Fund Landscape by Morningstar aims to deliver insight into the trends in the target date fund space and provide added perspective by answering questions that frequently arise.
- Employees spend a median of two hours on personal financial matters while at work each week. The 2017 Workplace Benefits Report by Bank of America Merrill Lynch points out that employees’ financial concerns can also become a challenge for employers because of lost productivity. The report found that younger employees spend significantly more time each week at work on personal finances than older employees.
The retirement savings challenge for women
Women may need more retirement income because they live longer, but they might save less if they leave work to care for family
Regulatory timeline
There has been continued regulatory advancement in the US.
Join MFS on the road
Institutional investor
DC Symposium
Join MFS September 14 and 15 in Half Moon Bay, Calif., to discuss the expanded role of retirement income in core menu investment design.
DC Summit
On November 5 and 6 in Boston, MFS’ global DC team will share insights from new proprietary retirement income research, including participant and retiree post-retirement objectives, misconceptions around income and savings and implications to plan design.
http://www.iiconferences.com/category/ defined-contribution/
University Conference Services
University Conference Services Mid-Sized Retirement and Healthcare Plan Management Conference
Join MFS September 27 through 30 in Austin, Tex., at the UCS Mid-Sized Retirement and Healthcare Plan Management Conference, where we’ll discuss the power of white- label investments and how they might help you optimize the plan participant’s experience.
http://www.ucs-edu.net/conferences
DCIIA
Academic Forum
On October 18 and 19 MFS will join fellow DCIIA members in New York at this annual event that brings together leading academics and innovative plan sponsors and practitioners for a series of panels on how to improve outcomes in defined contribution plans.
http://www.DCIIA.org
Insights & blogs
DC View: April 2017 global edition
This global edition of DC View highlights global trends across the defined contribution market and provides an update on regulatory news in various markets around the world.
Learn more
Target date funds under the hood: The importance of fixed income diversification
Fixed income diversification is an important but often overlooked component of TDF asset allocation.
Learn more
Fixed Income: Mitigating risk through active management
This white paper series highlights the MFS fixed income team’s benchmark-aware approach to fixed income investing, which provides important risk management discipline while addressing some of the issues associated with passively tracking an index.
Learn more
Sales team CentralGreg Jones, CFA
|
Consultant Relations team Christopher (Topher) Callahan
US EastSiobhan Acheson
|
Relationship Management team Steve Eastman
|
The views expressed in this report are those of MFS® and are subject to change at any time. These views should not be relied upon as investment advice, as securities recommendations, or as an indication of trading intent on behalf of any other MFS investment product.
Unless otherwise indicated, logos and product and service names are trademarks of MFS® and its affiliates and may be registered in certain countries.
This content is directed at investment professionals only.
Related Insights
