Background:

The MFS DC Plan Sponsor Survey is one of three annual surveys we conduct to capture perspectives across all major DC constituencies: participants, advisors, and plan sponsors. The 2026 MFS DC Plan Sponsor Survey explores plan sponsor views across three key areas: innovation, plan sponsor confidence, and investment menu and plan design; providing insight into what plan sponsors believe will truly improve outcomes for their participants.

Findings:

Innovation continues to be a prominent theme in the DC marketplace. Private assets and retirement income solutions are often positioned as the next frontier in plan design. But do plan sponsors believe these innovations will meaningfully improve participant outcomes?

Our 2026 survey suggests a different answer. When asked what will most effectively drive better retirement outcomes, plan sponsors point decisively to personalized advice. 70% say personalized advice is very or extremely important – more than double the share who believe retirement income solutions will move the needle, and more than ten times the share who cite the inclusion of private assets. The message from plan sponsors is clear: improving outcomes starts with meeting participants where they are, addressing individual needs, and helping them make better decisions throughout their working lives.

‍

‍

This emphasis on personalization is reinforced by plan sponsors’ own assessment of participant readiness. For the second year, MFS reports the Workplace Retirement Readiness Indicator, a confidence grade based on plan sponsor perceptions of their participants’ ability to retire confidently and achieve desired outcomes. The average grade for 2026 is a B, reflecting a modest but meaningful improvement from last year’s C+. At the same time, the wide dispersion of grades by plan size and benefit design underscores that progress is uneven, and that targeted, participant-centric strategies matter.

Investment menu and plan design findings further reinforce this point. Looking across three years of survey data, one trend remains consistent: target date funds are the predominant QDIA, but implementation varies widely by vehicle, management style, and glidepath. Plan sponsors recognize the importance of regularly evaluating their investment lineups to ensure they remain aligned with participant needs and plan objectives. For advisors and plan sponsors alike, the call to action is straightforward: when was the last time you evaluated your plan’s QDIA, and does it still support participant accumulation and long-term goals?

Bottom Line:

DC plans exist to help participants accumulate assets over the course of their careers so they can work towards achieving their goals in retirement. The 2026 survey reinforces two foundational truths. First, accumulation is essential. It is not merely a phase of the journey, but the engine that powers retirement readiness. Second, retirement is personal. Participants benefit most when advice and plan features reflect individual circumstances and behaviors. Striving for better outcomes can be built through disciplined accumulation, personalization, and thoughtful plan design that supports participants every step of the way.

‍

----

Insights shared by guest contributors are their own and do not represent the views of DCIIA or the RRC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

FOR INVESTMENT PROFESSIONAL USE ONLY

The views expressed in this presentation 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. Past performance is no guarantee of future results.

Unless otherwise indicated, logos and product and service names are trademarks of MFS® and its affiliates and may be registered in certain countries.

Distributed by: U.S. – MFS Institutional Advisors, Inc. ("MFSI"), MFS Investment Management and MFS Fund Distributors, Inc., Member SIPC.

‍