Morgan Stanley at Work Study Finds Plan Advisors Integral to Retirement Plan Participation and Outcomes

Inaugural workplace retirement study highlights plan sponsor views on the benefits of a plan advisor managing their workplace retirement plan

Morgan Stanley at Work today released new research from its inaugural workplace retirement study that shows plan sponsors see a positive impact and value in having a plan advisor oversee their workplace retirement plan to boost retirement plan participation and outcomes.

Based on survey results, plan sponsors cite peace of mind as a leading benefit when it comes to having plan advisors drive employee engagement and investment guidance—which eases internal concerns, adds value to the participant experience and decreases the pressure of administrative tasks. In addition, while investment management is cited as the number one reason plan sponsors consider advisory services, they also view relationship building—including accessibility, responsiveness and consistency—as key in growing corporate retirement plans.

Among the report’s key findings, plan sponsors believe retirement plan advisors:

• Boost retirement outcomes: Eighty-seven percent of plan sponsors reported that offering access to a plan advisor with a workplace retirement plan delivers better retirement plan outcomes.
• Have increased participation rates: Nearly 45% of plan sponsors with a plan advisor noted that 75–100% of eligible employees are enrolled in their company’s 401(k) versus only 33% of plan sponsors without a plan advisor.
• Deliver investment oversight: The top reason plan sponsors cite working with a plan advisor is to provide oversight of investment management, with 28% of the population selecting that choice.
• Provide more choice: An overwhelming number of plan sponsors (88%) agree that a plan advisor offers robust plan features with a range of investment options. In addition, respondents stated plans with an advisor tend to offer added features like automatic match, match options and auto enrollment that help better engage participants and increase retirement savings.
• Deliver ROI: 95% of plan sponsor respondents said the fees associated with a plan advisor is well worth the cost given the investment management (28%), fiduciary guidelines (67%) and compliance (75%) considerations.

“As a fiduciary of their workplace retirement benefits, plan advisors can play a central and critical role in helping employees reach their long-term investment and retirement goals, while helping employers attract and retain top talent,” said Anthony Bunnell, Head of Retirement for Morgan Stanley at Work. “Financial Advisors are an often-overlooked resource that can enhance and support the work plan sponsors do, while forging long-term, valuable relationships with their most mission-critical talent.”

Morgan Stanley at Work’s Value of the Financial Advisor study can be found here.

Methodology: The findings in the 2022 Value of the Financial Advisor report are based on proprietary, third-party research and survey data conducted by Rebel & Co. of 350 plan sponsors at companies with 20-3,000 employees that offer financial benefits including a 401(k) plan across various industries in the U.S. These companies have either a dedicated Financial Advisor with their 401(k) plan, has worked with an employer in the last 12 months that offered a 401(k) plan or currently involved in selecting or managing the company 401(k) plan. Respondents were interviewed via phone or using an online panel survey from February 7 – February 28, 2022.

Morgan Stanley at Work’s Retirement Solutions offers a flexible, multi-provider recordkeeper platform designed to meet the individual needs of companies. In addition to providing customized retirement solutions, Morgan Stanley at Work has dedicated retirement specialists that understand the challenges businesses face and offer support and service for their employees. Through a consultative process, the Firm’s specialists help companies improve plan competitiveness and fiduciary risk management, investment selection and monitoring, and employee retirement readiness.

Retirement Solutions is part of the Morgan Stanley at Work suite of financial solutions, which spans Equity Compensation through Shareworks and Equity Edge Online®, Retirement and Financial Wellness Solutions. Morgan Stanley at Work and Morgan Stanley’s intellectual capital and financial education delivered through multiple channels to enable employees to build a holistic plan to help them achieve their financial goals. Shareworks is provided by Morgan Stanley Smith Barney LLC, member SIPC, and its affiliates, and Equity Edge Online® employee stock plan solutions are offered by E*TRADE Financial Corporate Services, Inc., both are parts of Morgan Stanley at Work and all wholly owned subsidiaries of Morgan Stanley.

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 (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 41 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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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.

Morgan Stanley at Work and Shareworks services are provided by Morgan Stanley Smith Barney LLC, member SIPC, and its affiliates, all wholly owned subsidiaries of Morgan Stanley.

2022 Morgan Stanley Smith Barney LLC. Member SIPC.

Referenced Data

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