Industry Voice: How can the industry help DC members reach better retirement outcomes?
MFS outlines the UK results of from its most recent DC survey and examines the implications for the UK retirement market
Undersaving for retirement is a problem faced by workers around the world. The current retirement savings gap on a global basis is valued at £54 trillion and is projected to increase to approximately £300 trillion by 2050.1 The impact of the Covid-19 pandemic on jobs, income and the economic outlook has only exacerbated the problem.
Unfortunately, there is no one-size-fits-all solution. Addressing this complex challenge will take the combined ingenuity of pension trustees, scheme sponsors, advisors and asset managers working together. The first step is to understand member behaviour in order to identify actions that can raise the chances of better retirement savings outcomes.
To that end, we launched the MFS® Global Retirement Survey in April 2020. This is the second edition of this global survey targeting members in the United Kingdom, United States, Canada and Australia. Our goal was to gain insight into members' behaviour and perspectives on what it might take to help them reach the road to better outcomes.
In this report, we present five key findings from UK member responses around the central themes of adequacy and confidence, including how actively managed funds may allow members to generate additional returns versus passive strategies through increased dispersion across equity and fixed income markets. We also put forward action ideas for schemes, sponsors, advisors and asset managers to help members on their retirement funding journey.
For institutional and investment professional use only. Issued by MFS International (U.K.) Limited ("MIL UK"), a private limited company registered in England and Wales with the company number 03062718, and authorised and regulated in the conduct of investment business by the UK Financial Conduct Authority. MIL UK, an indirect subsidiary of MFS®, has its registered office at One Carter Lane, London, EC4V 5ER and provides products and investment services to institutional investors globally.
