Retirement guidance tops list of workers' most-wanted financial perks

Retirement guidance tops list of workers' most-wanted financial perks
Morgan Stanley research reaffirms the benefits of retirement and financial guidance, with four-fifths of employees looking to accelerate their planning.
JUN 07, 2024

Against a backdrop of continuing economic uncertainty, a new report from Morgan Stanley reveals that employees continue prioritize retirement planning support and financial guidance above all other financial benefits.

The annual study from Morgan Stanley at Work found that once again, employees rank retirement guidance and financial guidance as their top choice, followed by financial planning and goals-based retirement investment planning. That’s closely mirrored by HR professionals, who prioritized goals-based retirement investment planning, followed by access to a financial planner, and retirement planning tools and calculators.

According to the fourth annual State of the Workplace Financial Benefits Study, employees participating in their company 401(k) plans value financial guidance more highly than the general population. Seventy-seven percent of these participants expressed a need for financial investment planning support, compared to 68 percent of the general workforce.

Additionally, 82 percent of 401(k) participants feel the need to accelerate their financial planning to compensate for lost time, compared to 72 percent of non-participants. For many, retirement planning assistance is a critical factor when choosing an employer, with 63 percent of retirement plan participants rating it as a top or high priority.

“Our research continues to show that employees make better choices and engage more deeply with their retirement plans when they have access to financial education and guidance—in turn driving business outcomes, such as attracting and retaining talent,” Jeremy France, head of institutional consulting solutions at Morgan Stanley, said in a statement.

“Plan sponsors, providers, advisors, and record keepers have a clear mission to continue to work together to find the right blend of retirement support, with education an essential ingredient,” France added.

Despite improving economic conditions and a slight reduction in financial stress (a four percentage point decrease since 2023), nearly 78 percent of employees still feel the need to fast-track their financial planning to make up for lost time.

The study also reveals many employees are lowering their contributions to workplace financial accounts, with nearly 63 percent reportedly cutting back, closely echoing the 66 percent reported in 2023 and 62 percent in 2022. When it comes to 401(k)s, 36 percent of employees said they weren’t contributing as much, up three percentage points from last year.

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.