Excerpt from the mid-year Retirement Trend Report
Defined Contribution Industry
- New DOL Fiduciary Framework
- Expanding Retirement Access
- Retirement is Personal
Demand for personalization is growing, yet sponsors’ and participants’ uptake of retirement income products remains low. Advice can play a powerful role in supporting retirement income solutions, helping participants through a flexible, personalized approach.
Investment
- What Risks Do Target Date Funds Address?
- Private Assets: Loud Talk, Low Demand
- Active Management’s Staying Power
Active management is central to the investment menu conversation. 86% of plan sponsors believe offering a mix of active and passive options is good practice, and 52% say certain asset classes should be actively managed. Larger plans are more likely to include actively managed options.
Plan Sponsor/Advisor/ Participant
- Declining Retirement Confidence
- Personalized Advice Drives Better Outcomes
- Accumulation is Essential
91% of sponsors offer target date funds, with 86% using them as their QDIA. With TDFs nearly universal, the differentiator is how intentionally a fund supports accumulation and aligns with a plan’s demographics and retirement objectives. Accumulation is a critical part of the participant journey.
70% of plan sponsors say personalized advice is the number 1 driver of retirement success. 61% of plan sponsors are not evaluating private assets 86% use TDFS as their QDIA.
Retirement regulatory and legislative happenings
Reduced social security benefits?
The trustees of the Social Security trust fund released the annual Trustees Report in June 2026. The retirement trust fund is projected to be depleted in the fourth quarter of 2032, one quarter earlier than projected in last year’s report. This is the new estimated date that the retirement trust fund will become insolvent if Congress does not act. At that point, the retirement trust fund will only be able to pay out as much as it brings in through tax revenue. Actuaries estimate this to be 78% of total scheduled benefits.
DOL enforcement priorities
In April 2026, the DOL set forth its Employee Benefits Security Administration (EBSA) enforcement priorities and guiding principles:
- Focusing enforcement on the most egregious conduct and significant harm;
- Ensuring that EBSA does not regulate by enforcement and instead promotes fairness, prior notice, and clarity to the regulated community;
- Requiring a proper review by senior agency officials of all critical enforcement initiatives;
- Committing to timely and responsive enforcement.
DOL developments
In April 2026, Labor Secretary Lori Chavez-DeRemer resigned following an internal investigation. Deputy Secretary Keith Sonderling became acting secretary. As reported in our last update, the DOL issued the Investment Selection Rule, with a comment period that ended June.
- The DOL received over 47,000 public comments, highlighting the retirement industry’s interest in the proposed rule. The final rule may be issued by the end of the year.
Expanding retirement access
In April 2026, President Trump signed an executive order directing the Treasury to set up a federal IRA savings program for workers who do not have a workplace retirement plan.
The order directs the Treasury to establish TrumpIRA.gov and for it to be operational by January 1, 2027; this includes ensuring that those who contribute and are eligible receive the Federal Saver’s Match contribution (up to $1,000 per year to eligible lower- and middle-income workers).
Sources:
Social Security Administration, Trustees Report Summary
U.S. Department of Labor, Field Assistance Bulletin No. 2026-01
Planadviser, Labor Secretary Lori Chavez-DeRemer Resigns
Federal Register, Fiduciary Duties in Selecting Designated Investment Alternatives
The White House, Fact Sheet: President Donald J. Trump Expands Retirement-Savings Access for American Workers by Establishing TrumpIRA.gov
To learn how MFS can support better retirement outcomes, visit mfs.com/ retirement
