James P. Gorman, Executive Chairman of Morgan Stanley | Columbia Business School
Morgan Stanley at Work has released its fourth annual State of the Workplace Financial Benefits Study, revealing that employees continue to prioritize retirement planning support and financial guidance as essential workplace benefits. The study highlights that in an uncertain economic climate, employees are reducing their plan contributions while seeking financial advice from workplace resources. Meeting these needs is seen as crucial for attracting and retaining talent.
Key findings include:
- **Retirement and financial guidance:** Employees rank retirement preparation assistance as their top choice, followed by help with financial planning and goals-based retirement investment planning. HR leaders also prioritize goals-based retirement investment planning, access to a financial planner, and retirement planning tools. Both groups place high importance on access to a financial advisor.
- **Accelerated financial planning:** Despite improving economic conditions and a slight decrease in reported financial stress (down four percentage points since 2023), 78% of employees feel pressured to accelerate their financial planning efforts to compensate for lost time. This underscores the need for comprehensive long-term support through financial benefits like retirement plans.
- **Value of guidance among plan participants:** Employees participating in company 401(k) plans are more likely than the general population to seek financial investment planning support (77% vs. 68%) and feel the need to accelerate their planning (82% vs. 72%). Retirement planning assistance is a high priority for these participants when choosing where to work.
- **Reduced contributions:** Nearly two-thirds of employees (63%) report reducing contributions to workplace financial accounts due to the economic environment, consistent with previous years' data. More employees are specifically cutting back on 401(k) contributions this year (36%, up three percentage points from 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.”
Additional details are available in Morgan Stanley at Work’s State of the Workplace Study. Further findings on equity and financial benefits will be published in the coming weeks.
The study's data was collected through surveys conducted by Wakefield Research among 1,000 U.S.-employed adults and 600 HR leaders.
Morgan Stanley at Work offers workplace financial benefits aimed at building confidence and loyalty among employees, helping companies attract top talent through solutions including Equity, Retirement, Deferred Compensation, Executive Services, Savings, Giving solutions, and Financial Wellness programs.
Morgan Stanley Wealth Management provides a wide range of products including brokerage services, wealth management advisory services, cash management lending products, annuities insurance services, retirement trust services across its global network.
When providing "investment advice" regarding certain accounts under ERISA or Internal Revenue Code definitions Morgan Stanley acts as a fiduciary but does not hold this status when providing educational content or unsolicited order-taking without advisory input. For more information about Morgan Stanley’s role concerning Retirement Accounts visit www.morganstanley.com/disclosures/dol.
For media inquiries:
Jeanne Joe Perrone: Jeanne.Perrone@morganstanley.com
Lindsey Madnick: Lindsey.Madnick@morganstanley.com