2024 MFS DC Plan Sponsor Survey

2024 MFS DC Plan Sponsor Survey

Jeri Savage and Kristen Colvin break down three key themes from the MFS' 2024 MFS DC Plan Sponsor Survey and introduce a new proprietary confidence score indicator designed to measure plan sponsor confidence in participant retirement readiness.

Kristen: We are so excited to launch the results of our second annual MFS DC Plan Sponsor Survey. I am here with our lead retirement strategist, Jeri Savage. Jeri, give us a preview of the results this year!

Jeri: Kristen, the 2024 survey results do not disappoint. We have survey data that covers $125 billion in total plan assets across 1 million participants. We have responses broken down by small, mid and large sized plans – highlighting where sponsors may think differently. New this year, we have results by plan type and can see where sponsors with DB plans too might have a different point of view than DC only sponsors.

Kristen: An incredibly robust data set, it seems like. What are some of the key themes?

Jeri: We have three key themes in this year’s survey.

1. First, we look at sponsor confidence and drivers of that confidence or lack of confidence.
2. Second, we look at retirement income – and how plan sponsors are thinking about retirement income in terms of philosophy and structure, as well as their plans for adding solutions.
3. Third, we look at investment menu and plan design. Specifically, we focus on QDIAs and capital preservation options, and then we see what changes sponsors are contemplating when it comes to the overall investment menu and investment structure.

Kristen: So, a lot to contemplate and a lot to think about in terms of topics and themes. If you had to pick one, what would be the key takeaway for sponsors?

Jeri: Survey data is great, but to us, it’s about what you can do with the data and how it can inform us and help lead to better outcomes for participants.

• With this year’s survey, we have developed a plan sponsor confidence score. We are calling this the MFS Workplace Retirement Readiness Indicator.
• Our main takeaway this year is that the current average plan sponsor confidence is only a C+.
• We find differences in scoring by plan size and based on benefits offered. For example, large plan sponsors have an average B- score, but small plan sponsors only have C average when it comes to confidence. Also interestingly, DC only plans have a C+ average score, but those that offer a DB benefit have a B average and those with open DB plans have a B+ average workplace retirement readiness score.
• In thinking about how to improve overall confidence when it comes to readiness, we think there are certain steps DC plan sponsors can take in their plan design, overall investments, and by providing access to advice for participants.

Kristen: Workplace Retirement Readiness Indicator, I love that, and I think we can also call it WRRI index, to shorten it up a little bit. You highlighted at the beginning, the robust dataset that is encompassed in the survey. That being said, we’ve been asked historically by plan sponsors if there is an opportunity for them to participate in the survey. So, is there an interactive element that this WRRI indicator might provide. 

Jeri: Absolutely. We created the scoring based on a subset of the questions from this year’s survey. We have developed a tool where sponsors can answer the same questions and find out their own readiness confidence score, and again, with actionable recommendations on what to do with that scoring information.

Kristen: Jeri, thank you so much for sharing the preview of what is very robust data set, and some interesting insights and takeaways. 

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