Morgan Stanley at Work State of the Workplace Financial Benefits Study Highlights Evolving Stances on Financial Wellness and Retirement Benefits
October 05 2022 - 10:00AM
Business Wire
- 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
Morgan Stanley at Work released today the latest findings from
its second annual State of the Workplace Financial Benefits Study,
highlighting the economic challenges employees face amid high
inflation and evolving views on financial wellness and retirement
benefits:
- 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 Krystal
Barker Buissereth, Head of Financial Wellness at Morgan Stanley at
Work. “Especially in the face of today’s high inflation and market
uncertainty, we are seeing that smart and accessible workplace
benefits like Financial Wellness can be a lighthouse for employees
to find helpful tools, financial education, and professional
guidance.”
“The data makes it clear that employees are struggling to find a
balance between long-term savings and immediate needs,” said
Anthony Bunnell, Head of Retirement at Morgan Stanley at Work. “One
often-overlooked resource that can change the game, especially in
today’s environment, is the financial advisor available through
your workplace retirement plan—who can help participants reach
financial goals.”
Additional details are available in Morgan Stanley at Work’s
State of the Workplace Study, available here. As part of a series
of findings from Morgan Stanley at Work’s second annual study, the
business published its findings on financial benefits and will also
publish its findings on equity compensation 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. The survey
was conducted on behalf of Morgan at Stanley at Work using an email
invitation and an online survey between July 13th and July 19th
2022, by Wakefield Research (www.wakefieldresearch.com).
About Morgan Stanley at Work Morgan Stanley at Work
offers a suite of financial solutions, which spans Equity
Compensation through Shareworks and E*TRADE Equity Edge Online,
Retirement and Financial Wellness Solutions. Morgan Stanley at Work
combines cutting-edge planning and Morgan Stanley intellectual
capital and financial education delivered through multiple channels
to enable employees to build a holistic plan to achieve their
financial goals. Shareworks services are 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
https://www.morganstanley.com/.
Morgan Stanley Wealth Management is the trade name of Morgan
Stanley Smith Barney LLC, a registered broker-dealer in the United
States.
© 2022 Morgan Stanley Smith Barney LLC. Member SIPC.
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Media Relations: Katrina Clay, Katrina.Clay@morganstanley.com
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