Guidance Tops Employee Most-Wanted List For Retirement Benefits in 2024
June 06 2024 - 9:00AM
Business Wire
- Access to financial advisors linked to retirement planning
remains high priority
- Retirement and financial planning support top list of
retirement benefits employees think will help them meet financial
goals
- Companies recognize that employees need additional retirement
planning support
Morgan Stanley at Work today released results from its fourth
annual State of the Workplace Financial Benefits Study, which
demonstrate that employees once again voted retirement planning
support and financial guidance top of their list for most-wanted
financial benefits. Results indicate that amid an uncertain
economic climate, employees are reducing plan contributions, yet at
the same time seeking financial guidance from workplace resources.
The ability for employers to meet employee needs and expectations
around retirement support prevails as a key factor in talent
attraction and retention.
Key findings from the data include:
- Retirement guidance and financial guidance top the list of
must-haves: Retirement preparation assistance is the top choice
for employees, followed by help with financial planning and
goals-based retirement investment planning. For HR leaders,
goals-based retirement investment planning comes first, followed
closely by access to a financial planner and retirement planning
tools and calculators. In fact, both employees and HR leaders alike
rank access to a financial advisor among their top-three choices
for the most beneficial retirement planning assistance.
- Employees are accelerating financial planning efforts:
Even as economic conditions improve and fewer employees say
financial stress is negatively affecting their work and personal
life (a four percentage point decrease since 2023), nearly 8 in 10
(78%) still feel pressure to accelerate their financial planning to
help make up for lost time—emphasizing the continued importance of
comprehensive and long-term support through financial benefits like
retirement.
- Retirement plan participants value guidance even more
highly: Employees who participate in their company 401(k)s are
more likely than the general population to say that they need
financial investment planning support (77% vs. 68%). They are also
more likely to feel the need to accelerate their financial planning
to make up for lost time (82% vs. 72% who don’t participate). In
fact, retirement planning assistance from professionals is so
important to retirement participants that 63% say it is a top or
high priority when choosing where to work.
- Employees are cutting back on contributions: Nearly two
in three employees (63%) say they are still reducing contributions
to their workplace financial accounts (nearly on par with 66% in
2023 and 62% in 2022) due to the economic environment. In fact,
this year even more employees say they are reducing contributions
to their 401(k) plans (36%, up three percentage points since
2023).
“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,” said Jeremy France, Head of Institutional Consulting
Solutions at Morgan Stanley. “HR leaders and employees are equally
invested in continuing to improve how companies can better assist
their benefits participants. 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.”
Additional details are available in Morgan Stanley at Work’s
State of the Workplace Study here. As part of a series of findings
from Morgan Stanley at Work’s third annual study, the business will
publish its findings on equity and financial benefits in the coming
weeks.
Methodology: The data from the Morgan Stanley at Work
Employees Survey and HR Leaders Survey comes from a survey of 1,000
U.S.-employed adults and 600 HR leaders for companies by Wakefield
Research (www.wakefieldresearch.com).
About Morgan Stanley at Work
Morgan Stanley at Work provides workplace financial benefits
that build financial confidence and foster loyalty—helping
companies attract and retain top talent. Our end-to-end solutions
support your organization at any stage of growth through a powerful
combination of modern technology, insightful guidance, and
dedicated service; they include Equity, Retirement, Deferred
Compensation, Executive Services, and Saving and Giving solutions.
And while we’re fulfilling your company’s benefits needs, we’re
also enhancing your employees’ financial well-being. Each benefit
solution also includes our engaging Financial Wellness program,
which provides employees with knowledge, tools, and support to help
them make the most of their benefits and achieve their life
goals.
About Morgan Stanley Wealth Management
Morgan Stanley Wealth Management is a leading financial services
firm that provides access to a wide range of products and services
to individuals, businesses, and institutions, including brokerage
and investment advisory services, financial and wealth planning,
cash management and lending products and services, annuities and
insurance, retirement, and trust services.
About Morgan Stanley
Morgan Stanley is a leading global financial services firm
providing a wide range of investment banking, securities, wealth
management and investment management services. With offices in 42
countries, the Firm’s employees serve clients worldwide including
corporations, governments, institutions and individuals. For
further information about Morgan Stanley, please visit
www.morganstanley.com.
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