Morgan Stanley at Work Study Reveals Plan Advisors Are Integral to Retirement Plan Participation and Results | Business

NEW YORK–(BUSINESS WIRE)–May 25, 2022–

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 drive pension plan participation and results.

According to survey results, plan sponsors cite peace of mind as one of the top benefits of having plan advisors drive employee engagement and advice. of investment, which alleviates internal concerns, adds value to the participant experience and reduces the pressure of administrative tasks. Additionally, 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 a key to the growth of company pension plans.

Among the key findings of the report, plan sponsors believe that pension plan advisors:

  • Improve results in retirement: Eighty-seven percent of plan sponsors said offering access to a plan advisor with a workplace pension produces better pension 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.
  • Ensure the monitoring of investments: The top reason plan sponsors cite working with a plan advisor is to provide oversight of investment management, with 28% of the population choosing this choice.
  • Offer more choices: An overwhelming number of plan sponsors (88%) agree that a plan advisor offers robust plan features with a range of investment options. Additionally, respondents said plans with an advisor tend to offer additional features such as auto-matching, pairing options, and auto-enrollment that help better engage plan members and increase retirement savings. .
  • Offer a return on investment: 95% of plan sponsor respondents said the fees associated with a plan advisor were well worth the cost considering investment management (28%), fiduciary guidelines (67%) and compliance (75%) considerations .

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

Morgan Stanley Financial Adviser’s Value at Work study is available here.

Methodology: Discoveries in the Financial Advisor Value Report 2022 are based on proprietary third-party research and survey data conducted by Rebel & Co. of 350 plan sponsors at companies with 20 to 3,000 employees that offer financial benefits, including a 401(k) plan in various industries in the United States. These companies either have a dedicated financial advisor with their 401(k) plan, have worked in the past 12 months with an employer that offered a 401(k) plan, or are currently involved in selecting or administering the 401(k) plan. k) of the company. Respondents were interviewed by telephone or using an online panel survey from February 7 to February 28, 2022.

Morgan Stanley at Work’s retirement solutions offer a flexible, multi-vendor record-keeping platform designed to meet individual business needs. In addition to providing personalized retirement solutions, Morgan Stanley at Work has dedicated retirement specialists who understand the challenges companies face and offer support and services to 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 preparedness.

Retirement Solutions is part of the Morgan Stanley at work suite of financial solutions, which covers equity compensation through Shareworks and Equity Edge Online®, retirement and financial wellness solutions. Morgan Stanley at Work and Morgan Stanley intellectual capital and financial education are delivered through multiple channels to enable employees to develop 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 part of Morgan Stanley at Work and wholly owned subsidiaries of Morgan Stanley.

About Morgan Stanley Wealth Management

Morgan Stanley Wealth Management is a leading financial services company providing access to a wide range of products and services for individuals, businesses and institutions, including brokerage and investment advisory services, financial and wealth planning , cash management and lending products and services, annuities, and insurance, pension and trust services.

About Morgan Stanley

Morgan Stanley (NYSE: MS) is a leading global financial services company providing a broad range of investment banking, securities, wealth management and investment management services. With offices in 41 countries, the company’s employees serve customers around the world, including businesses, governments, institutions and individuals. For more information on Morgan Stanley, please visit morganstanley.com.

This document has been prepared for informational purposes only and does not provide personalized investment advice. It has been prepared without taking into account the personal financial situation and objectives of the people who receive it. The strategies and/or investments discussed herein may not be suitable for all investors. Morgan Stanley Smith Barney LLC recommends that investors independently evaluate particular investments and strategies and encourages investors to seek the advice of a financial advisor. The suitability of a particular investment or strategy will depend on the investor’s individual circumstances and objectives.

Morgan Stanley Smith Barney LLC does not imply any affiliation, sponsorship, endorsement with/of the third party or that any monitoring is carried out by Morgan Stanley Smith Barney LLC (“Morgan Stanley”) of any information contained in the website. Morgan Stanley is not responsible for the information contained on any third-party website or for the use or inability to use such site. We also do not guarantee their accuracy or completeness.

Where Morgan Stanley Smith Barney LLC, its affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors (collectively, “Morgan Stanley”) provide “investment advice” with respect to a pension or benefits account, a Individual Retirement or Coverdell Education Savings Account (“Retirement Account”), Morgan Stanley is a “trustee” as those terms are defined in the Employees Retirement Income Security Act of 1974, as amended (“ERISA”) and/or the Internal Revenue Code of 1986 (the “Code”), as applicable. Where Morgan Stanley provides investment education, accepts orders on an unsolicited basis, or does not provide “investment advice”, Morgan Stanley will not be considered a “fiduciary” under ERISA and/or the Code. . For more information on 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 investment or other transaction made in connection with a retirement account. .

Morgan Stanley at Work and Shareworks the 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. SIPC member.

Referenced data

Are you OK with having a dedicated financial advisor supporting your company’s 401(k) benefit?

to agree

worth the cost

95%

Provides peace of mind regarding regulatory concerns

93%

Provides support to work with archivist and/or third party administrator

92%

Provides support to answer employee questions about the plan

92%

Brings peace of mind to board/corporate leaders when making critical business financial decisions

92%

Provides peace of mind for plan design as the business scales

91%

Provides financial education and tools to employees

90%

Provides better plan results for our business

87%

Encourages the participation of eligible employees

86%

Offers peace of mind regarding attendee data security

86%

Result: more employees on track for retirement

86%

Is a perk that helps attract and retain top talent

85%

Employee involvement

Currently has a financial advisor

Does not currently have
a financial advisor

75-100%

44%

33%

Are your eligible employees on track to prepare for retirement?

Currently has a financial advisor

Currently has no
Financial Advisor

Yes, all or most eligible employees are on track

85%

76%

What was the main reason for providing access to a
financial advisor dedicated to the company’s 401(k) benefits plan?
Investment management oversight

28%

Employee Resources

20%

Plan the design as the business grows

15%

Administrative Support

12%

Fiduciary responsibilities

ten%

CEO Personal Link

9%

Work with my plan before my employment

7%

Show source version on businesswire.com:https://www.businesswire.com/news/home/20220525005674/en/

Media Relations Contacts: Katrina Clay,Katrina.clay@morganstanley.com| Lindsey Madnick, Lindsey.madnick@morganstanley.com

KEYWORD: NEW YORK UNITED STATES NORTH AMERICA

SECTOR KEYWORD: FINANCE CONSULTANCY BANKING PROFESSIONAL SERVICES HUMAN RESOURCES

Source: Morgan Stanley

Copyright BusinessWire 2022.

PUBLISHED: 05/25/2022 11:02 AM/DISC: 05/25/2022 11:02 AM

http://www.businesswire.com/news/home/20220525005674/en


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