Financial Education

Demystifying Financial Advice and Empowering Participants

Discover how providing your employees with access to financial advice can help attract and retain talent, and how Morgan Stanley at Work can help.

To help your employees meet their financial goals, it’s important to first debunk some common misconceptions about the role of financial advisory solutions. For example, did you know that 49% of U.S. adults say they are too intimidated to seek financial advice, even if they need it?1 Among the people who do not use a Financial Advisor, 51% worry about finding one they can trust.2 For some, this may be due to concerns that they will not receive the quality of advice they require, that they will be sold services they may not need or that they will be charged excessive fees. For others, this may revolve around a belief that financial advice is reserved for only the wealthy. Either way, these misconceptions may be making it harder for people to meet their short- and long-term financial goals.

 

Employers may have a role to play in closing this gap. In fact, Morgan Stanley at Work’s 2024 State of the Workplace Financial Benefits Study found that 81% of employees would like more help from their employers in navigating specific financial challenges.3

 

Bridging the Gap

Many employers understand the importance of delivering on these expectations. Among HR leaders, 87% think financial benefits are a game changer for retention.4 However, obstacles remain.

 

Just like their employees, most employers want to make sure that any financial advisory solutions they deliver are trustworthy, affordable, accessible and aligned to employee needs. Some are finding that they can check all these boxes by extending their existing workplace benefits to include a financial advisory component. For example, companies that already rely on Morgan Stanley at Work for their equity administration can expand their current offering to provide their employees with access to a Morgan Stanley Financial Advisor.

 

This has the potential to deliver the following advantages:

 

  1. 1
    Trust

    Working with a pre-vetted organization and building on an existing relationship means that employees get access to Financial Advisors who have a vested interest in meeting—and exceeding—both company and participant expectations. At the same time, those Financial Advisors are backed by an experienced team of analysts, strategists and economists and have access to comprehensive resources that equip them to deliver financial advice that employees can rely on.

  2. 2
    Affordability

    When financial advisory is offered as a workplace benefit, employees may feel more comfortable seeking out financial advice and support. This brings down barriers to entry and makes it possible for more people to seek advice, regardless of their wealth profile or the size of their portfolio.

  3. 3
    Accessibility

    A multi-faceted approach to the delivery of financial advice means that employees can access the guidance they need, when they need it. For instance, quick questions could potentially be answered through phone centers, digital tools or virtual advisors. Financial Advisors can work with employees on a one-to-one basis to help them put an investment plan in place that takes their personal financial goals into account. Companies can even choose to provide their executives with access to private wealth management or family office support. This breadth of available resources positions employers to help meet the needs of their employees across the board.

  4. 4
    Alignment

    Financial Advisors who already understand a company’s benefits and equity compensation programs are uniquely positioned to offer employees advice that aligns to their financial realities. Notably, 85% of employees believe their company needs to do a better job explaining how to maximize their financial benefits5. Financial Advisors who are fully versed in your particular plan can play a stronger role in meeting those expectations.

Employers Can Benefit Too

Providing your employees with access to financial advice has the potential to do more than empower your benefits plan participants. It may also strengthen your company’s ability to help attract and retain talent.

 

In fact, 94% of employees say that retirement planning assistance from financial professionals is a priority when choosing where to work. Similarly, 89% say they would feel more invested in staying at their company if it provided financial benefits that meet their specific needs. And the number one most-wanted financial benefit they cite is access to a Financial Advisor.6

 

If your company is considering extending its benefits program to include financial advice, flexible program design and program management support may help to streamline the initiative and make it easier for participants to access the resources that are right for them. Reach out to learn more about how Morgan Stanley at Work can help.

 

 

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1 Unbiased, October 5, 2023. “Financial confidence in the US,” by Rachel Carey.

2 LSEG, March 14, 2024. “The Future of Wealth: The changing role of financial advice,” by Sarlota Hohwald and Sune Mortensen.

3 Morgan Stanley at Work, May 2024. “State of the Workplace: 2024 Financial Benefits Study, page 4.”

4 Morgan Stanley at Work, May 2024. “State of the Workplace: 2024 Financial Benefits Study, page 4.”

5 Stanley at Work, May 2024. “State of the Workplace: 2024 Financial Benefits Study, page 4.”

6 Morgan Stanley at Work, May 2024. “State of the Workplace: 2024 Financial Benefits Study, page 24.”

 

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 Stanley at Work using an email invitation and an online survey between February 5 and February 12, 2024, by Wakefield Research.

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