The Retirement Trend Report
70%OF PLAN SPONSORS SAY PERSONALIZED ADVICE IS THE #1 OUTCOME DRIVER 61% ↑OF PLAN SPONSORS ARE NOT EVALUATING PRIVATE ASSETS
86% ↑USE TDFs AS THEIR QDIA
To learn how MFS can support better retirement outcomes, visit mfs.com/retirement.
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DC INDUSTRY
New DOL Fiduciary Framework
The Department of Labor’s Investment Selection Rule reinforces the importance of a repeatable, well-documented fiduciary process. The takeaway: treat the proposed six-factor test as an “all-options” framework for reviewing any investment in the plan. Applied consistently, strong documentation helps committees compare diverse solutions on common ground.
Expanding Retirement Access
Expanding coverage for workers without employer-sponsored plans remains a national priority. A recent executive order aims to increase IRA access and leverage SECURE 2.0 federal matching contributions, effective January 2027, following the July 2026 launch of Trump Accounts (tax-advantaged children’s savings)1.
Retirement Is Personal
Demand for personalization is growing; yet sponsors’ and participants’ uptake of retirement income products is low. Advice is the strongest retirement income solution, as is serving participants through a flexible, personalized approach.
INVESTMENT
What Risks Do Target Date Funds Address?
Sponsors rank diversification risk (38%) and downside market risk near retirement (22%) as their top TDF concerns. Notably, longevity risk didn’t make the top three — a potential gap for plans with a through-retirement glidepath. Sponsors should ensure their TDF strategy aligns with their stated priorities.
Active Management’s Staying Power
Active management is central to the investment menu conversation. 86% of sponsors believe offering a mix of active and passive options is good practice, and 52% say certain asset classes should be actively managed. Larger plans are more likely to include actively managed options.
Private Assets: Loud Talk, Low Demand
Despite headlines, 61% of plan sponsors aren’t evaluating private assets. Among those exploring, most are still in early education, and only 4% plan to implement within 24 months. The buzz is real; the adoption is not.
PLAN SPONSOR/ADVISOR/PARTICIPANT
Declining Retirement Confidence
Participant confidence in retiring at their desired age has declined across generations from 2021 through 2025, and most advisors and sponsors share that concern. The silver lining: plan sponsor confidence shifted meaningfully this year from 18% to 33%.
Accumulation Is Essential
91% of sponsors offer target date funds, with 86% using them as their QDIA. With TDFs nearly universal, the differentiator is how intentionally a fund supports accumulation and aligns with a plan’s demographics and retirement objectives. Accumulation is a critical part of the participant journey.
Personalized Advice Drives Outcomes
70% of plan sponsors rate personalized advice as very or extremely important to better retirement outcomes — more than 2X those who favor retirement income solutions, and more than 10X those citing private assets. The message is clear: personalized advice helps drive retirement outcomes.
Sources: 2026 MFS DC Plan Sponsor Survey, 2026 MFS Retirement Plan Advisor Survey, 2025 MFS Global Retirement Survey. For survey methodology, please click here or visit https://www.mfs.com/content/dam/mfs-enterprise/email_assets/link assets/mfsi/SurveysMethodology.pdf.
1https://www.whitehouse.gov/presidential-actions/2026/04/promoting-retirement-savings-access-for-american-workers-by-establishing-trumpira-gov/
Keep in mind that all investments, including mutual funds, carry a certain amount of risk including the possible loss of the principal amount invested.
Distributed by: U.S. – MFS Institutional Advisors, Inc. (“MFSI”), MFS Investment Management and MFS Fund Distributors, Inc., Member SIPC;
The views expressed 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 MFS investment product. No forecasts can be guaranteed.