Plan Sponsor Confidence in Retirement Readiness Jumps to 33%
Event summary
- MFS's annual survey shows 33% of plan sponsors are now very or extremely confident in participants' retirement readiness, up from 18% last year.
- 70% of sponsors believe personalized advice is key to improving retirement outcomes.
- 86% of sponsors use target date funds (TDFs) as their qualified default investment alternative (QDIA).
- 65% of plans offer actively managed strategies, with 86% preferring a mix of active and passive approaches.
The big picture
The survey reflects a broader industry shift toward participant-centric retirement solutions, with sponsors increasingly prioritizing engagement tools and personalized advice. MFS's findings come as economic uncertainty persists, making the confidence uptick particularly notable. The $400 billion in plan assets surveyed underscores the scale of these trends, with TDFs maintaining dominance as the preferred QDIA option.
What we're watching
- Personalization Demand
- How the growing expectation for tailored retirement advice will shape plan sponsor offerings.
- Alternative Strategies
- Whether media-driven interest in alternatives will translate into meaningful adoption in retirement plans.
- Active Management
- The pace at which active strategies gain traction in larger plans amid market volatility.