Morgan Stanley at Work State of the Workplace Financial Benefits Study Highlights Evolving Stances on Financial Wellness and Retirement Benefits
- Employees and HR leaders are more aware of the impact of personal financial wellness on workplace performance
- More than half of employees reported the need to reduce contributions to their long-term savings due to current economic conditions
- Employees most value access to a financial advisor in helping to stay financially fit
- Employees are scaling back retirement contributions: Because of the economic impacts related to inflation and/or concerns about a recession, 62% of employees report that they’ve needed to reduce contributions to their savings, with nearly a third (31%) reducing contributions to their 401(k) plans and more than a quarter (26%) scaling back on paying off their debts and loans.
- Gen Z (74%) and Millennials (68%) were more likely to have made these reductions than their Baby Boomer counterparts (37%).
- Employees citing money-related stress as a performance inhibitor increased year over year: Nearly 3 in 4 employees (71%) report that money-related stress negatively affects their work and personal lives, up 7% (from 64%) in 2021.
- Many are struggling in silence, with nearly half (47%) of employees reporting that they have either never thought to reach out or are unsure if they are allowed to reach out to their employer for assistance with their personal finances.
- Among age groups, Millennials (77%) would be most likely to say financial stress is negatively impacting their work and personal lives, up from 69% the previous year.
- Employees want to work with an Advisor: When asked what type of retirement planning would be most beneficial to them, employees identified access to a Financial Advisor as their top choice, with 52%. However, HR professionals list goals-based retirement investment planning as employees’ top priority (47%), followed by access to retirement planning tools and calculators (43%), and tied for third, access to a Financial Advisor (40%) and retirement planning workshops (40%).
- Retirement Planning – A Plus for Retention: All HR leaders say that retirement planning assistance from financial professionals is a priority in retaining employees, with 76% citing this support as a top or high priority. Further, 93% of employees also view retirement planning assistance as a priority when choosing where to work.
“Employees are looking to their employers for the resources and support they need to navigate personal financial challenges—challenges that have a real impact on their professional and personal success, both day to day and long-term,” said
“The data makes it clear that employees are struggling to find a balance between long-term savings and immediate needs,” said
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Methodology: The data from the
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