As Workers Place More Value on 401(k)s, Sponsors Turn to Advisers for Education

As employees weigh their workplace benefit options, retirement plans rank among the five benefits most valued.

According to Morgan Stanley’s 2026 Retirement Plan Survey, 93% of plan sponsors ranked defined contribution plans among the benefits employees value most, tying with healthcare coverage.

Notably, 34% of plan sponsors named defined contribution plans as the single most valued benefit, an increase from 15% in Morgan Stanley’s last retirement study in 2024.

“The 401(k) has gone from just being part of the benefits package to a central piece of employees’ financial well-being. When sponsors see it standing alongside healthcare, that raises the bar,” wrote Jeremy France, head of institutional consulting solutions​ at Morgan Stanley, in an email to PLANADVISER.

Employers also prioritize employees understanding of their plans more than competitiveness. While 40% of plan sponsors named maintaining a competitive benefits program among their three most important concerns, 45% named helping employees understand the 401(k) plan.

In 2024, 32% of plan sponsors ranked helping employees understand their 401(k) plan among their top three main concerns, highlighting an increased need for plan education resources.

Where Advisers Come in

With employee comprehension landing a top spot in employer concerns, France said advisers have an opportunity to help sponsors build stronger plans and ensure employees understand them.

“The answer is not just giving them more information—it’s more relevant education and personalized guidance,” he wrote. “Advisers can help sponsors convert education into practical next steps, tailored to their employees’ unique needs. For example, someone enrolling for the first time needs different guidance than someone nearing retirement.”

Building up employees’ 401(k) plan confidence also appeared to improve their overall financial confidence, according to a separate benchmark report by Voya Financial Inc., “America’s Financial Confidence Index.”

The report was based on a survey conducted between June 22 and July 5 of 4,097 benefits-eligible U.S. employees ages 25 through 64 who participated in workplace retirement plans. On average respondents scored 67 out of 100 for financial confidence, compared with 62 out of 100 for financial behaviors needed to reach their goals.

“Our score is not just how people feel. There’s a lot of studies on confidence and how people feel and that’s often really impacted by external factors … Our number is about: Are they actually engaged in behaviors that build confidence and help them achieve their personalized financial goals?” says Kerry Sette, vice president and head of consumer insight and research at Voya Financial.

Employees who actively used workplace financial education resources scored 71 out of 100 on financial behaviors, compared with 59 out of 100 for those who did not use the resources.

“When we looked at people who were workplace education users, they had a score of 71, which means they are actively engaging in 71% of the behaviors that will get them to their financial goal. … That says to us … that workplace education can literally level the playing field,” says Sette.

People who worked with a financial professional scored 69 in financial behaviors, compared with 57 for those who did not.

“Working with a professional financial adviser is a huge opportunity, especially through the workplace. When we think about the workplace, we say that’s often where financial lives really start,” says Sette.

In Morgan Stanley’s retirement study, plan sponsors also saw growing value in their fiduciary consultants. Most sponsors (69%) ranked their adviser or consultant among their three most valuable resources for assessing the investment lineup.

“That’s an opportunity and a responsibility to connect investment decisions with participant needs. Strong plan design creates the opportunity; clear guidance helps employees make the most of it,” wrote France.

When plan sponsors were asked which tools or resources would be most effective in driving higher participant engagement, the most common responses were group education sessions; workshops or trainings; broader financial wellness topics beyond retirement; and one-on-one advisory meetings to enhance awareness.

“Regular communication helps everyone align on understanding evolving investments and wellness tools, assessing what fits into a specific workforce, and linking plan design with support that extends through retirement,” wrote France. “Advisers should position themselves as an ongoing resource, not just a periodic investment reviewer.”

Morgan Stanley’s survey was conducted by independent research firm 8 Acre Perspective among 200 retirement plan sponsors from July through August. Respondents were investment decisionmakers at organizations with at least $50 million in defined contribution plan assets.