Companies are responding to an aging workforce and scars from the past three years of elevated inflation by changing up options in their retirement plans, according to surveys by global asset manager MFS Investment.
Six of 10 retirement savers said they’re worried inflation could affect their savings, while 61% of the more than 4,000 plan participants MFS surveyed said they’ve become more conservative investors.
On the flipside, 45% of the 140 plan sponsors surveyed said they’ve either made or are considering changes to their fixed income offerings and 35% said they’ve made or may adjust their inflation-protected options.
“It is clear that workers’ anxieties about retirement have grown in the face of persistent inflation and economic concerns, and plan sponsors recognize this and are responding in real time,” said Jeri Savage, MFS lead retirement strategist.
By offering more of these options, employers also hope to convince workers to stay in the plan even after they’ve retired, she said.
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Why do employers want retirees to stay in their retirement plans?
With size comes purchasing power.
“As you age, you have a larger balance and that’s helping to create some scale of that plan,” Savage said. Companies can “negotiate better fees and everything, including better (investing) options and services” that benefit retirees and current employees.
“It’s also paternalistic,” she said. “It helps…
