Morgan Stanley at Work conducted a study of plan sponsors working with various firms and asked their first-hand perception of Financial Advisor involvement and planning with their retirement solutions. What we found is overwhelming support from sponsors who find great value in leveraging Financial Advisors to oversee their plan.
The Value of a Financial Advisor to a 401(k) Plan
For many employers, offering a retirement plan to employees can seem intimidating; fiduciary and administrative responsibilities may seem overwhelming and feel difficult to manage. A dedicated Financial Advisor can help ease this pressure.
3 Key Survey Findings:
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1Financial Advisors can help deliver confidence to plan sponsors
Plan sponsors value the support Financial Advisors offer when helping them oversee investment management, fiduciary, and administrative responsibilities. Financial Advisors can give plan sponsors confidence in addressing the demands of providing a workplace retirement plan to their employees.
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2Retirement plans with Financial Advisors offer more robust features
Having access to a dedicated Financial Advisor to provide guidance may result in a retirement plan with more design options that a plan sponsor alone may not have previously considered.
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3Plan sponsors agree that companies may offer better outcomes to employees when Financial Advisors are involved in their workplace retirement plan
According to the survey, 87% of plan sponsors agree that their employees experience better retirement outcomes when a Financial Advisor is involved to oversee plan design implementation. A Financial Advisor can help make recommendations that a plan sponsor may not consider on their own, as well as perform needs assessments and provider searches, which can lead to increased engagement and participation in the plan.
Find out more in the full report
See how Financial Advisor support with retirement plans may result in better retirement solution outcomes for plan sponsors and their employees.
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Retirement
1 Morgan Stanley at Work (2022). The Value of a Financial Advisor Report, (page 10).
2 Morgan Stanley at Work (2022). The Value of a Financial Advisor Report, (page 15).
3 Morgan Stanley at Work (2022). The Value of a Financial Advisor Report, (page 16).
Disclosures:
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 services are provided by Morgan Stanley Smith Barney LLC, member SIPC, and its affiliates, all wholly owned subsidiaries of Morgan Stanley.
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