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FOCUS ON THE DC RISKS THAT MATTER

The great recession of 2008-2009, a sluggish recovery and a volatile stock market have heightened retirement plan participants' perceptions of risk. However, our 2013 DC Pulse research reveals that de-risking portfolios and short-term thinking will not get participants closer to a comfortable retirement in the years to come.

Together, we can help support successful retirement outcomes by focusing your DC clients on the risks that matter to their plans and participants.

MISCONCEPTION

Only 54% of plan participants view their 401(k) assets as long-term investments.

SOLUTIONS

Bill Loesch
Director of Global Retail Marketing

INSIGHTS ACROSS GENERATIONS
  • 55% of Gen Y participants consider their 401(k) assets savings rather than investments.
  • Nearly half of Gen X and Boomers also have this same short-term mindset.
  • Women across generations have saved just $68,000 for retirement.

RESOURCES

Call our dedicated DCI specialists at 1-800-637-8730 to learn more about using these public-approved resources.

MFSI DC Pulse, Q1 2013
MFS, through Research Collaborative, an independent research firm, sponsored an online survey from January 29 to February 6, 2013, of 1,002 defined contribution plan participants who identified themselves as being between the ages of 20 and 69 and employed with at least a $1,000 balance in a plan with their current employer. MFS was not identified as the research sponsor. Gen Y are plan participants under the age of 33. Gen X constitutes participants between the ages of 33 and 47. The term "boomers" refers to those between the ages of 48 and 66.
MISCONCEPTION

On average, investors think they will need to save just $515,000 for retirement.

SOLUTIONS

Bill Loesch
Director of Global Retail Marketing

INSIGHTS ACROSS GENERATIONS
  • Gen X thinks they'll need to save $560,000 for retirement.
  • Gen Y thinks they'll need to save less $483,000.
  • Participants' average plan balance is $84,000 even though retirement is just 21 years away.

RESOURCES

Call our dedicated DCI specialists at 1-800-637-8730 to learn more about using these public-approved resources.

MFSI DC Pulse, Q1 2013
MFS, through Research Collaborative, an independent research firm, sponsored an online survey from January 29 to February 6, 2013, of 1,002 defined contribution plan participants who identified themselves as being between the ages of 20 and 69 and employed with at least a $1,000 balance in a plan with their current employer. MFS was not identified as the research sponsor. Gen Y are plan participants under the age of 33. Gen X constitutes participants between the ages of 33 and 47. The term "boomers" refers to those between the ages of 48 and 66.
MISCONCEPTION

Participants expect to earn 8% annually despite holding one-third of their assets in conservative investments.

SOLUTIONS

Bill Loesch
Director of Global Retail Marketing

INSIGHTS ACROSS GENERATIONS
  • Among self-described conservative investors, 43% have no idea how their 401(k) assets are allocated.
  • Gen Y participants have more than a third of their assets in the most conservative investments.
  • 28% of Gen Y participants consider money market/stable value funds risky compared with only 18% of older participants.

RESOURCES

Call our dedicated DCI specialists at 1-800-637-8730 to learn more about using these public-approved resources.

MFSI DC Pulse, Q1 2013
MFS, through Research Collaborative, an independent research firm, sponsored an online survey from January 29 to February 6, 2013, of 1,002 defined contribution plan participants who identified themselves as being between the ages of 20 and 69 and employed with at least a $1,000 balance in a plan with their current employer. MFS was not identified as the research sponsor. Gen Y are plan participants under the age of 33. Gen X constitutes participants between the ages of 33 and 47. The term "boomers" refers to those between the ages of 48 and 66.
"MIS"BEHAVIOR

Fewer than 3 in 10 plan participants have conducted a formal risk self-assessment.

SOLUTIONS

Bill Loesch
Director of Global Retail Marketing

INSIGHTS ACROSS GENERATIONS
  • Of the few participants who have conducted a formal risk self-assessment, 94% found it helpful.
  • 41% of participants identify themselves as aggressive investors. When asked to invest a hypothetical sum, more than a third of self-described aggressive investors expressed a desire to invest conservatively.
  • Only 35% of Boomers are confident their investments and risk tolerance are aligned.

RESOURCES

Call our dedicated DCI specialists at 1-800-637-8730 to learn more about using these public-approved resources.

MFSI DC Pulse, Q1 2013
MFS, through Research Collaborative, an independent research firm, sponsored an online survey from January 29 to February 6, 2013, of 1,002 defined contribution plan participants who identified themselves as being between the ages of 20 and 69 and employed with at least a $1,000 balance in a plan with their current employer. MFS was not identified as the research sponsor. Gen Y are plan participants under the age of 33. Gen X constitutes participants between the ages of 33 and 47. The term "boomers" refers to those between the ages of 48 and 66.