Professional Guidance, Planning and Income Solutions Most-Wanted Retirement Benefits Amid Volatility: Morgan Stanley Retirement Study
- As financial stress rises, employees are cutting back on contributions to workplace retirement plans
- Access to financial advisors, planning support and retirement income solutions increasingly in demand
Morgan Stanley at Work, together with Morgan Stanley Institutional Consulting Solutions which supports the retirement business, today announced retirement-focused data from its fifth-annual State of the Workplace Financial Benefits Study.
Results show that while more employees are participating in their workplace retirement plans, they are also responding to economic uncertainty by cutting back on their account contributions and looking for financial guidance through the workplace. Addressing employee needs and expectations around retirement plan support remains key to talent attraction and retention—the top-cited strategic financial priority for companies in 2025.
Key findings include:
- Employees are tightening their belts: While participation in 401(k) plans held steady year-over-year at 86%, financial stress is affecting retirement savings behavior. More employees are reducing 401(k) contributions specifically because they are concerned about economic impacts related to inflation or recession (39%, +3 percentage points year-over-year). This is particularly pronounced among Gen Z workers at nearly half (48%). Overall, 67% of employees say they are reducing their contributions across all savings accounts, up 4 percentage points since 2024.
- Employees are looking for more comprehensive retirement guidance: When it comes to the most valued types of retirement planning assistance, access to a financial advisor is the top choice for employees, followed by goals-based retirement investment planning, and retirement income solutions. HR leaders ranked the same three choices among their top three (38% each)—showing clear consensus around the need for holistic support throughout the full retirement cycle.
- Professional guidance is a key differentiator: 69% of HR executives believe access to retirement planning assistance from financial professionals is a top or high priority for employees when choosing where to work. A majority of employees agree (54%)—and even more so among those who participate in their company benefits (60%), who are also less likely to say that they need to accelerate their financial planning efforts to make up for lost time (82% vs. 90).
"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," said Jeremy France, Head of Institutional Consulting Solutions at Morgan Stanley. "Our findings emphasize that modern workplace retirement plans go beyond simply offering a 401(k) and match; they now integrate ongoing financial advisory, investment planning and income solutions. This next generation of workplace retirement plans—especially those which include ongoing planning and consultancy support—are a strategic asset that can help companies foster employee loyalty and business stability in any environment."
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 fifth 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 Institutional Consulting Solutions
Through Institutional Consulting Solutions, Morgan Stanley provides comprehensive retirement services include investment advice and solutions for institutional investors; support for plan sponsors in managing retirement plans, navigating regulations and educating employees; and plan participant education and personalized guidance.
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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