Enhanced Investments - Financial Portal

Guidance Tops Employee Most-Wanted List For Retirement Benefits in 2024

Published: 2024-06-06 14:00:00 ET

Access to financial advisors linked to retirement planning remains high priority
Retirement and financial planning support top list of retirement benefits employees think will help them meet financial goals
Companies recognize that employees need additional retirement planning support

NEW YORK--(BUSINESS WIRE)-- Morgan Stanley at Work today released results from its fourth annual State of the Workplace Financial Benefits Study, which demonstrate that employees once again voted retirement planning support and financial guidance top of their list for most-wanted financial benefits. Results indicate that amid an uncertain economic climate, employees are reducing plan contributions, yet at the same time seeking financial guidance from workplace resources. The ability for employers to meet employee needs and expectations around retirement support prevails as a key factor in talent attraction and retention.

Key findings from the data include:

Retirement guidance and financial guidance top the list of must-haves: Retirement preparation assistance is the top choice for employees, followed by help with financial planning and goals-based retirement investment planning. For HR leaders, goals-based retirement investment planning comes first, followed closely by access to a financial planner and retirement planning tools and calculators. In fact, both employees and HR leaders alike rank access to a financial advisor among their top-three choices for the most beneficial retirement planning assistance.
Employees are accelerating financial planning efforts: Even as economic conditions improve and fewer employees say financial stress is negatively affecting their work and personal life (a four percentage point decrease since 2023), nearly 8 in 10 (78%) still feel pressure to accelerate their financial planning to help make up for lost time—emphasizing the continued importance of comprehensive and long-term support through financial benefits like retirement.
Retirement plan participants value guidance even more highly: Employees who participate in their company 401(k)s are more likely than the general population to say that they need financial investment planning support (77% vs. 68%). They are also more likely to feel the need to accelerate their financial planning to make up for lost time (82% vs. 72% who don’t participate). In fact, retirement planning assistance from professionals is so important to retirement participants that 63% say it is a top or high priority when choosing where to work.
Employees are cutting back on contributions: Nearly two in three employees (63%) say they are still reducing contributions to their workplace financial accounts (nearly on par with 66% in 2023 and 62% in 2022) due to the economic environment. In fact, this year even more employees say they are reducing contributions to their 401(k) plans (36%, up three percentage points since 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. Plan sponsors, providers, advisors, and record keepers have a clear mission to continue to work together to find the right blend of retirement support, with education an essential ingredient.”

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 third 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 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.

When Morgan Stanley Smith Barney LLC, its affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors (collectively, “Morgan Stanley”) provide “investment advice” regarding a retirement or welfare benefit plan account, an individual retirement account or a Coverdell education savings account (“Retirement Account”), Morgan Stanley is a “fiduciary” as those terms are defined under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and/or the Internal Revenue Code of 1986 (the “Code”), as applicable. When Morgan Stanley provides investment education, takes orders on an unsolicited basis or otherwise does not provide “investment advice”, Morgan Stanley will not be considered a “fiduciary” under ERISA and/or the Code. For more information regarding Morgan Stanley’s role with respect to a Retirement Account, please visit www.morganstanley.com/disclosures/dol. Tax laws are complex and subject to change. Morgan Stanley does not provide tax or legal advice. Individuals are encouraged to consult their tax and legal advisors (a) before establishing a Retirement Account, and (b) regarding any potential tax, ERISA and related consequences of any investments or other transactions made with respect to a Retirement Account.

This communication contains links to third party websites. These links are provided only as a convenience. The inclusion of any link is not and does not imply an affiliation, sponsorship, endorsement, approval, investigation, verification or monitoring by Morgan Stanley of any information contained in any third party website. In no event shall Morgan Stanley be responsible for the information contained on that site or your use of or inability to use such site. You should also be aware that the terms and conditions of such site and the site's privacy policy may be different from those applicable to your use of any Morgan Stanley website.

Morgan Stanley Wealth Management is the trade name of Morgan Stanley Smith Barney LLC, a registered broker-dealer in the United States.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240605828561/en/

Media Relations: Jeanne Joe Perrone, Jeanne.Perrone@morganstanley.com Lindsey Madnick, Lindsey.Madnick@morganstanley.com

Source: Morgan Stanley

Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

Important disclosures

Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.

Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities.
Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance.
All the strategies assume investments in equity invstrumenta only and are more relevant for "agressive investment profile". Eastern European flagship strategy assumes using up to 20% leverage of total portfolio. GlobalCommodities and US Growth strategy currently assume no leverage.
Results for the Enhanced Investments strategies as compared to the performance of Illustrative Benchmarks is for informational purposes only. Our investment program does not mirror that of the Illustrative Benchmarks and the volatility may be materially different from the volatility of Illustrative Benchmarks. Reference or comparison to an Illustrative Benchmark does not imply that strategies of Enhanced Investments will be constructed in the same way as the Illustrative Benchmark or achieve returns, volatility, or other results similar to those of the Illustrative Benchmark. The S&P 500 is an unmanaged market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.
Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.