Retirement Portfolios Are Becoming More Personalized

MFS argues defined-contribution retirement plans are entering a new phase where investment menus increasingly need to reflect personalization, retirement income needs, and aging demographics. 

• Target-date funds now dominate younger investors’ portfolios, but older participants increasingly rely on core menu investment options as they approach retirement.
• Plan sponsors are placing greater emphasis on decumulation strategies, including stable-value products, shorter-duration fixed income, and systematic withdrawal structures.
• MFS also sees growing demand for customized portfolios and managed-account solutions built around more diversified core investment menus.

The paper’s underlying message is subtle but important: retirement investing is slowly shifting away from one-size-fits-all accumulation toward individualized income management and portfolio flexibility.