Morgan Stanley has released the findings of its 2024 Retirement Plan Survey, highlighting changing attitudes and strategies among 401(k) plan sponsors. The survey reflects a growing reliance on consultants to navigate the complexities of retirement planning.

The survey polled nearly 200 decision-makers from organizations with substantial 401(k) assets. It found that over 80% of plan sponsors are currently using consultants. Jeremy France, Head of Institutional Consulting Solutions at Morgan Stanley, noted, "Retirement plans are adapting to address both company and employee needs, and our survey results show that it's not just about improving financial results, but about doing what's best for the future."

The demand for consultant relationships is increasing, with many plan sponsors considering shifting to higher-touch services such as those offered by a 3(38) investment manager. This shift is driven by reasons including reduced executive workload and enhanced fiduciary responsibility.

Investment lineups are also expanding. While most sponsors do not plan to increase their asset managers, over a third intend to offer more investment options. Many have already added target date funds and hybrid default investment options. However, challenges remain in participant communication and regulatory compliance.

Participant education is emphasized as crucial for successful retirement plans. Online tools and live training sessions are popular formats for engaging participants. Nearly half of the sponsors rely on consultants for educational resources.

Morgan Stanley's comprehensive offerings include support for managing retirement plans and educating employees through Institutional Consulting Solutions.

For further information on Morgan Stanley's services or the full survey results, interested parties can visit their website.