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Retirement Insights
7 min

Retirement Pulse // October 2026

October 2026
Research, regulations, returns and trends

MFS Retirement Takes 

Retirement Regulatory and Legislative Happenings

Retirement Market Data 

Investment Index Returns

MFS Retirement Takes

MFS 2026 Global Retirement Survey – US Results Key Findings at a Glance

WHERE SAVERS STAND TODAY

Confidence Is Recovering
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41%
Are very or extremely confident they can retire when they want.

Today Outbids Tomorrow
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76%
Say competing financial priorities get in the way of saving.

Retirement Arrives Early
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43%
Of retirees left the workforce earlier than they expected.

THE OPPORTUNITY FOR ADVICE

A Costly Misunderstanding
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72%
Believe target date funds guarantee retirement income.

Advice Is in Demand
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77%
Say access to personalized advice is very important.

Retirement Arrives Early
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64%
Would use an advisor if their workplace plan offered one.

                                                                                                                          

 

These findings highlight several important trends shaping retirement planning. Contact your MFS representative to explore the full results and to discuss the implications for your organization.

Sources:
2026 MFS DC Plan Sponsor Survey, 2026 MFS Retirement Plan Advisor Survey, 2025 MFS Global Retirement Survey. For survey methodology, please visit https://www.mfs.com/content/dam/mfs-enterprise/email_assets/link-assets/mfsi/SurveysMethodology.pdf

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Retirement Regulatory and Legislative Happenings  

ESG Revisited

The Department of Labor is moving forward with proposing a replacement ESG rule: Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights. 

If adopted, this would replace the Biden era rule concerning the use of ESG factors by retirement plan fiduciaries when making investment decisions. The new regulation would require plan fiduciaries to select investments and exercise shareholder rights based only on financial considerations tied to risk adjusted returns, and not to advance social causes.

The proposed rule was submitted to the Office of Information and Regulatory Affairs (OIRA) on June 30. OIRA generally has up to 90 days to approve a rule for release.

Trump Accounts Launch

Implementation of Trump Accounts is underway. They are designed primarily around low-cost, diversified US equity index funds. The State Street SPDR Portfolio S&P 500 ETF was selected as the default investment option, with four additional index funds expected to become available, all with expense ratios of 0.02% or 0.03%, below the 0.10% statutory fee cap.

Further, the Treasury Department is automatically enrolling beneficiaries rather than requiring manual sign-ups, a policy reversal that has added more than 60 million beneficiaries.

The Treasury also announced that large scale philanthropic contributions may be made using publicly traded individual stocks, although additional guidance is needed on eligibility and implementation.

Beyond the Settlement

A proposed $13.4 million ERISA settlement includes a requirement that the plan sponsor instruct the plan’s recordkeeper not to solicit plan participants with non-plan products (such as IRAs, insurance, and wealth management services) for 3 years, unless requested by the participant or approved by the plan sponsor. 

The agreement also requires the plan to conduct an RFP for investment and administrative services. 

Similar cross-selling restrictions have appeared in several ERISA settlements involving large universities and corporations, reflecting growing scrutiny of recordkeeper sales practices and potential conflicts of interest.

Pension Assumptions Challenged

A proposed $184.1 million settlement seeks to resolve a long-running ERISA lawsuit alleging that a defined benefit plan used outdated mortality assumptions to calculate certain pension benefits, resulting in lower payments for some retirees.

The settlement would provide more than $149 million to current and future retirees, including $113.5 million in additional benefits for current retirees, and would require the plan sponsor to update the actuarial assumptions for joint-and-survivor annuity calculations and review them at least every 10 years going forward. If approved, the agreement would represent the largest settlement to date in a string of lawsuits challenging pension plans' use of outdated actuarial assumptions when determining retirement benefits.

Sources:

Office of Information and Regulatory Affairs: “Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights” Reginfo.gov.
Treasury Announces the Completion of Automatic Enrollment Today for Trump Accounts | U.S. Department of the Treasury
Treasury Announces Trump Account Investment Options | PLANSPONSOR
Ignites - Trump Accounts to Allow Contributions of Individual Stocks
Liberty Mutual ERISA settlement requires plan management changes Pensions & InvestmentsAT&T Agrees to $184M Settlement in Retiree Pension Lawsuit | PLANSPONSOR

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Retirement Market Data

A closer look at target date fund investors over time

MOST IMPORTANT REASONS TO HAVE A HUMAN ADVISOR AS PART OF A PROVIDER RELATIONSHIP

ALL RESPONDENTS

I feel more comfortable working with a human advisor

28%

I want to be able to ask specific questions about my situation

20%

I prefer to have a strong ongoing relationship with my advisor

19%

I want a guide to help me understand my financial plan

13%

I want to collaborate in the financial planning process

11%

My needs are complicated; I don't believe a digital platform will understand me

5%

I don't have confidence in digital platform recommendations

5%
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Participants in 401(k) retirement plans place more value on the human elements of their advisor relationship than on having their advisor manage their portfolio.
 

What’s essential in advisor relationships?
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40%
say personalization

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36%
say availability to answer questions

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35%
cite confirmation that they are on the right track

                                                                                                                          

 

Whether seeking reassurance, answers to specific questions, or ongoing support, participants continue to prioritize the human elements of advice that help them navigate their retirement journey.

Sources:
The Cerulli Edge, The Americas Asset and Wealth Management Edition, The End-Investor Advice Issue, published September 2026.

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Investment Index Returns 

As of September 30, 2026 

BENCHMARK

10 YEARS

5 YEARS

3 YEARS

1 YEAR

YTD

3 MONTHS

BALANCE

Illustrative 60/40 Portfolio

9.71%

8.01%

15.16%

8.56%

6.39%

-0.05%

EQUITY

S&P 500

15.33%

13.79%

22.89%

15.74%

12.75%

2.30%

Russell 1000® Growth

18.16%

13.66%

24.26%

7.50%

6.30%

0.92%

Russell 1000® Value

11.43%

11.92%

20.07%

23.81%

19.27%

2.61%

Russell 2000®

9.84%

6.34%

17.72%

16.20%

13.71%

-7.23%

MSCI EAFE

9.07%

9.32%

18.40%

15.69%

10.33%

0.81%

MSCI Emerging Markets

9.09%

8.94%

24.09%

29.22%

23.38%

-0.37%

MSCI ACWI

12.38%

11.57%

21.73%

16.75%

13.03%

1.60%

FIXED INCOME

Bloomberg US TIPS

2.15%

0.00%

3.75%

-1.99%

-2.12%

-3.24%

Bloomberg US Aggregate

1.14%

-0.64%

4.06%

-1.84%

-2.91%

-3.51%

Bloomberg Global Aggregate

1.61%

0.34%

4.25%

-0.64%

-1.42%

-2.53%

CASH

Cash

2.50%

3.88%

4.71%

3.91%

2.86%

0.97%

 

Sources:
SPAR, FactSet Research Systems Inc., MFS analysis. Illustrative 60/40 portfolio comprises 60% S&P 500 and 40% Bloomberg US Aggregate and is rebalanced monthly. This hypothetical example is for illustrative purposes only. MSCI indices shown are net returns. Returns for the Bloomberg Global Aggregate Index are hedged to USD.
Cash is based on returns for the FTSE 3-month Treasury Bill Index. 
The historical performance of each index cited is provided to illustrate market trends; it does not represent the performance of a particular MFS® investment product. It is not possible to invest directly in an index. Index performance does not take into account fees and expenses. Past performance is no guarantee of future results. You should consider your client’s financial needs, goals, and risk tolerance before making any investment recommendations.

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Disclosures

“Standard & Poor’s®” and “S&P®” are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and sublicensed for certain purposes by Massachusetts Financial Services Company (“MFS”). The S&P 500® is a product of S&P Dow Jones Indices LLC, and has been licensed for use by MFS. MFS’ product(s) is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates, and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, their respective affiliates make any representation regarding the advisability of investing in such product(s).

Frank Russell Company ("Russell") is the source and owner of the Russell Index data contained or reflected in this material and all trademarks, service marks and copyrights related to the Russell Indexes. 
Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and/or Russell ratings or underlying data and no party may rely on any Russell Indexes and/or Russell ratings and/or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell's express written consent. Russell does not promote, sponsor or endorse the content of this communication.

BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively "Bloomberg"). Bloomberg or Bloomberg's licensors own all proprietary rights in the Bloomberg Indices. Bloomberg neither approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed or produced by MSCI.

Source: FTSE International Limited ("FTSE") © FTSE 2022. "FTSE®" is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data and no party may rely on any FTSE indices, ratings and/or data underlying data contained in this communication. No further distribution of FTSE Data is permitted without FTSE's express written consent. FTSE does not promote, sponsor or endorse the content of this communication.

The views expressed are those of the author(s) and are subject to change at any time. These views are for informational purposes only and should not be relied upon as a recommendation to purchase any security or as a solicitation or investment advice from the Advisor. No forecasts can be guaranteed.

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

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