Those With a Financial Plan Feel More Confident, Satisfied and Less Financially Worried, Finds Morgan Stanley Wealth Management

•  Early & consistent financial planning key to maximize financial choices and opportunities
• While ~97% acknowledge the importance of financial planning to reach goals, only 53% have a financial plan

Morgan Stanley Wealth Management today unveiled the results of research on financial planning, underscoring the pivotal role a professional financial plan plays not just in achieving financial long-term goals, but also confidence and wellbeing amid market uncertainty.

The poll surveyed over one thousand affluent investors between the ages of 25-75 to explore how financial planning fits into their lives, with "financial planning" defined as a comprehensive process involving a Financial Advisor analyzing a client's entire financial situation and helping them set and work toward short- and long-term goals.

Key takeaways from the research include:

1. Financial Plans Correlate with More Positive Mental Wellbeing: Investors with a financial plan report greater confidence and satisfaction. Fewer worry about saving enough (36% vs. 47% without a plan) and on average they rate their investment value and financial health higher by ~10%. They are also more likely to describe their financial outlook as "prepared" and "hopeful," and report better mental wellbeing and satisfaction in both life direction and relationships.
2. Majority Wish They Started Sooner: Despite 76% of investors with a formal financial plan wishing they had started earlier (at the beginning of their careers), only 28% actually did, with 68% waiting until the need to save for retirement emerged—a significant gap between ideal financial planning behaviors and reality.
3. Yet There Is a Confidence Gap: While 53% of those still working feel very confident they will be able to save for retirement, only 36% feel very confident that they know how—a 17-point knowledge confidence gap. At the same time, a significant majority (66%) lack confidence in achieving their long-term goals—even higher among women (68%) and younger investors (70% Millennials, 72% Gen Z).
4. And Investors Perceive Barriers to Planning: Even though almost all (97%) recognize the importance of financial planning, only 53% have a plan. Part of this disconnect lies in perceived barriers, with investors' top-cited roadblocks to action including perceived high costs (53%), believing they can achieve similar results on their own (44%), or lack of assets (38%).
5. Professional Advisors Make a Clear Difference: Most (74%, with or without a financial plan) believe that undergoing the planning process with a professional is important, demonstrating that the value proposition for professional guidance is well understood.
6. And Financial Planning Deepens Advisor Relationships: Among those who work with a Financial Advisor, those with a financial plan are significantly more engaged: 51% meet with their advisor (vs. only 25% of those without a plan), and 37% actively review advisor communications (vs, 20%). This highlights a significant opportunity for advisors to enhance client relationships and engagement through comprehensive financial planning.

"Financial planning matters at every stage of life and level of wealth. Our research confirms that a professionally created plan offers a roadmap to achieve financial goals—but perhaps the most compelling insight for us in this data is the positive impact it can also have on one's life and sense of wellbeing." said Anthea Tjuanakis Cox, Head of Financial Planning at Morgan Stanley. "At Morgan Stanley, we're focused on making financial planning accessible to everyone. It's never too late to start, and the data makes it clear that early and consistent planning helps people make better financial choices and creates opportunities for additional growth over time."

At Morgan Stanley, the financial planning process is customizable and tailored to each client's needs, considering time horizons, risk tolerance and the unique makeup of their assets.

The financial planning study was conducted from September 27 to October 11, 2024, surveyed 1,013 U.S. adults with household liquid assets of $250,000 or more, using a representative, probability-based panel to assess financial planning trends among affluent Americans. For more information about financial planning at Morgan Stanley, visit here.

About Morgan Stanley Wealth Management

Morgan Stanley Wealth Management, a global leader, 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 (NYSE:MS) 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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