Morgan Stanley at Work, in collaboration with Morgan Stanley Institutional Consulting Solutions, has released data from its fifth annual State of the Workplace Financial Benefits Study. The study reveals that while employee participation in workplace retirement plans remains steady, economic uncertainty is prompting many to reduce their contributions and seek financial guidance through their employers.
The study highlights that 86% of employees are participating in 401(k) plans, but financial stress is influencing their savings behavior. A notable 39% of employees are reducing contributions due to concerns about inflation or recession, a trend particularly evident among Gen Z workers at nearly half (48%). Overall, 67% of employees report cutting back on contributions across all savings accounts.
The demand for comprehensive retirement guidance is growing. Employees value access to financial advisors most highly, followed by goals-based retirement investment planning and retirement income solutions. HR leaders echo these priorities, with each option receiving a top-three ranking (38%).
Professional guidance emerges as a significant factor in employment decisions. According to the study, 69% of HR executives view access to retirement planning assistance from financial professionals as a high priority for employees when choosing where to work. A majority of employees agree (54%), especially those who participate in company benefits (60%).
Jeremy France, Head of Institutional Consulting Solutions at Morgan Stanley, stated: “In the face of economic uncertainty, it is clear that comprehensive retirement benefits are essential for individual financial security while also serving as a critical lever to retain top talent.” He emphasized that modern workplace retirement plans now integrate ongoing financial advisory services and investment planning.
Additional findings from Morgan Stanley at Work’s fifth annual study will be published soon.
The survey data was collected by Wakefield Research from 1,000 U.S.-employed adults and 600 HR leaders.
Morgan Stanley at Work offers workplace financial benefits designed to build confidence and foster loyalty among employees. Its solutions include Equity, Retirement, Deferred Compensation, Executive Services, and Saving and Giving options.
Morgan Stanley Institutional Consulting Solutions provides comprehensive retirement services including investment advice for institutional investors and support for plan sponsors.
Morgan Stanley Wealth Management offers a wide range of products and services including brokerage and investment advisory services.
For more information on Morgan Stanley's role regarding Retirement Accounts under ERISA or the Internal Revenue Code visit www.morganstanley.com/disclosures/dol.