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

clock • 2 min read

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.

 

1Georgetown University Center for Retirement Initiatives, 'Closing the Global Retirement Savings Gap: A Tale of Two Numbers', March 2018

 

Read More

 

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.

More on Defined Contribution

Government announces small pensions pot consolidator

Government announces small pensions pot consolidator

Pension Schemes Bill measure will reduce admin costs and boost pots

Jonathan Stapleton
clock 24 April 2025 • 2 min read
Mansion House Compact II draft circulated after 'tense' negotiations

Mansion House Compact II draft circulated after 'tense' negotiations

Reports say Rachel Reeves is closing in on a £50bn deal with pension funds to ‘buy British’

Jonathan Stapleton
clock 22 April 2025 • 2 min read
Aon urges DC members to 'stay calm' amid increased market volatility

Aon urges DC members to 'stay calm' amid increased market volatility

Firm warns savers to be ‘on their guard’ against risk of scams during tariff-induced turmoil

Martin Richmond
clock 14 April 2025 • 2 min read
Trustpilot