Retirement benefits are having a breakout moment. A new survey from Morgan Stanley finds that defined contribution (DC) plans have risen sharply in perceived value among American workers, with plan sponsors now ranking 401(k)s on par with healthcare as the benefit employees prize most.
The 2026 Morgan Stanley Retirement Plan Survey found that 34% of plan sponsors now believe the DC plan is employees' most valued workplace benefit, compared to just 15% in 2024, more than doubling in two years. An additional 93% of respondents ranked DC plans among employees' top five benefits, placing them level with healthcare for the first time.
The survey, which was conducted between July and August 2026 by independent research firm 8 Acre Perspective, polled 200 retirement plan sponsors at organizations with at least $50 million in defined contribution plan assets. Respondents were investment decision-makers responsible for plan design, investment lineups, and participant engagement.
The surge in perceived value has a significant downside: it raises the bar. Forty-five percent of plan sponsors cited helping employees understand their DC plan as a top concern.
Plan sponsors have long wrestled with the gap between offering a strong plan and ensuring participants actually use it effectively. As more Americans approach retirement age, employers are under mounting pressure to move beyond compliance-minded plan management toward active participant engagement and personalized financial education.
Between economic volatility, increased demand for personalized financial guidance, and mandates from the SECURE 2.0 Act of 2022, plan sponsors in 2026 are experiencing heightened pressure to improve participant engagement and retirement readiness.
Financial advisors who serve plan sponsors are increasingly expected to bring participant-facing solutions to the table, not just investment lineup reviews.
Morgan Stanley's findings place financial advisors and consultants at the heart of how plan sponsors are responding to this moment. According to the survey, 69% of plan sponsors rank their investment advisor or consultant as one of the top three most valuable resources in assessing their plan's investment lineup.
That finding aligns with broader industry data. A September 2026 Fidelity Investments survey of 1,311 plan sponsors found that 93% work with an advisor as they navigate plan design and investment decisions, market complexity, and long-term retirement plan strategy.
Fidelity's 17th annual Plan Sponsor Attitudes Study further found that employee education and advisor-managed accounts each tied as the third most frequently added service among sponsors.
The convergence of these findings points to an industry where advisors are being asked to do more and where clients are prepared to reward those who deliver on the full scope of that expanded role.
Jeremy France, Head of Institutional Consulting Solutions at Morgan Stanley, said: "Retirement benefits are having a marquee moment. When plan sponsors say they think employees value 401(k)s on par with healthcare, it signals a fundamental shift in how we define both financial security and workplace benefits."
France added: "Plan design is only half the equation. Helping people understand, engage with and use their plan is what will elevate decent benefits to key differentiators."
That message resonates at a moment when the retirement plan advisory market is increasingly competitive. As consolidation continues to reshape the RIA and broker-dealer landscape, advisors serving plan sponsors face greater scrutiny from clients who want demonstrable results - not just process.
A June 2025 Cerulli Associates report found that 63% of active 401(k) participants do not have a financial advisor, while 52% of mass-affluent participants without an advisor say their retirement savings account provider is their primary source of retirement planning guidance.
The Morgan Stanley survey arrives as the retirement plan industry is navigating a pivotal transition from awareness of the need for retirement income solutions toward practical implementation. The Investment Retirement Income Council projected in late 2025 that 2026 would mark a significant period when plan sponsors move from exploration to execution on in-plan retirement income solutions.
Advisors who serve this market would do well to note what plan sponsors are signaling: participants need help, employers know it, and the advisor is the most trusted resource in the room. For those willing to build out participant education offerings alongside investment consulting, the rewards - in both retention and referrals - are measurable.
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