Jeri Savage, Retirement Lead Strategist, Investment Solution Group, MFS.
MFS Investment Management’s survey polled over 4,000 participants from the US, Canada, UK, and Australia to learn key issues that are top of mind for participants. The survey covers a number of key themes, including how recent events have impacted participant decisions, retirement confidence, participant views and advice, pension income, target date funds, and finally sustainable investing.
MFS’ retirement specialists Jeri Savage and Jonathan Barry, highlight the new findings in this video.
Market Event Impacts on Pension Savers
- The recent increase in inflation has caused participants to think differently about their retirement and their retirement savings.
- People feel that they will need to work longer than they planned, save more than they planned, and some even feel that they may not be able to retire at all.
- It’s more likely that people have become more conservative because of market events.
Source: MFS 2023 Global Retirement Survey. Q: Please indicate how strongly you agree or disagree with each statement about how the past three years of market events including the COVID-19 pandemic and related economic impacts have affected your retirement and retirement saving. Percentages represent the sum of respondents who somewhat agree or strongly agree with each statement. Arrow represents trend from 2022 survey results.
An Evolving Definition of Retirement
- The traditional view of retirement may no longer resonate with people; people now expect to have a more gradual transition into retirement rather than a hard stop.
- This sentiment can have implications for workforce management.
Source: MFS 2023 Global Retirement Survey. Q1: Do you expect your retirement to be… This question was only posed to respondents age 45+.
Strong Global Demand for ESG Investments
- ESG Investing may offer an opportunity to engage with participants/members on a topic they care about.
- Millennial, Gen X and Baby Boomers are likely to contribute at a higher rate to their retirement plan if the plan offers investment options that consider ESG issues.
Millennials: Ages 26-41. Gen X: Ages 42-57. Boomer: Ages 58-77
Source: MFS 2023 Global Retirement Survey. Q1: How interested are you in seeing more sustainable (ESG) investments offered in your employer-sponsored retirement plan? Percentages represent the sum of respondents that chose somewhat interested, very interested and extremely interested. Q2: How likely would you be to contribute at a higher rate to your workplace retirement fund if your plan offered or included investment options that consider sustainability issues? Percentages represent the sum of respondents that chose somewhat likely, very likely and extremely likely.
For more details, reach out to your MFS contact below or visit mfs.com/dc.
Managing Director, Relationship Management – UK
+44 (0) 20 7429 7301
Relationship Director, Institutional Relationship Management
+44 (0) 20 7429 7345
Kelly Tran, CFA
Managing Director, UK & Ireland Institutional Sales
+44 (0) 20 7429 7374
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