Working with a financial planner has been shown to give retirement investors higher returns, lower stress and more confidence that they’ll have enough money on hand to enjoy their old age. And according to a new survey from Morgan Stanley, it’s become the workplace perk more employees want to see. You can also consider working with a financial advisor for help with overall financial and retirement planning.
The Rise in Employee Needs for Financial Planning
According to a new At Work study from Morgan Stanley, nearly three out of every five employees (56%) rank the ability to receive retirement planning assistance from financial professionals as a high priority when choosing where they want to work. That’s an increase of 5% from 2022.
For 25% of those respondents, financial advice was the top benefit they wanted to get at work – a reflection of the increased financial stress hitting the majority of Americans. Drilling down further, the study found that 92% of employees said help with retirement planning was one of their priorities when choosing where to work.
Unfortunately, the study found that one out of every four human resources leaders surveyed said their companies were reducing employee financial benefits to cut costs in anticipation of a possible recession. Those cuts come despite 97% of those same HR leaders saying their company needs to do a better job at providing resources to maximize the financial benefits offered to employees.
“Economic instability has led both employers and employees to tighten their belts, and ask a lot of their workplace benefits in the process,” said Brian McDonald, head of Morgan Stanley at Work, in the study. “We’re seeing momentum on both the employer and employee side to engage more intelligently with financial benefits as a ballast against uncertainty.
What’s Driving Workers’ Desire for Financial Planning
One reason that workers need financial planning help and education comes from the study’s finding that workers hit by inflation already are cutting back on their retirement savings. Two-thirds (66%) of employees surveyed for the study said they reduced contributions to their retirement and savings accounts because of the higher cost of living or because of recession fears.
More broadly, 38% of workers in the survey said they face issues with financial goal-setting now, while 40% of workers said they were struggling with personal and household budgeting. Two-thirds of workers surveyed also reported that financial stress was hurting their work and personal life.
Employers who can continue to offer financial planning help – or even expand their financial benefits – could get a leg up in today’s tight labor market. Three-quarters of employees say financial benefits are so essential to meeting their financial goals that they’d consider quitting for a new job that offered better benefits. An even higher percentage of workers (89%) said they’d stay with an employer that offered the right kind of financial benefits package.
Besides financial and retirement planning assistance, financial workplace benefits can include employer-sponsored retirement and life insurance plans, disability insurance, emergency savings funds, student loan assistance, family-related financial assistance, college fund assistance, home buying or rental assistance and legal assistance.
More workers are struggling with financial and retirement planning, as well as other money issues, and say they want more help with financial planning from their employers. One answer is working with a financial advisor, which has been shown to improve investment results and retirement readiness. Employers, however, are cutting back on workplace financial benefits.
Tips on Financial Planning
- Engaging a financial advisor can help you plan for your financial future. If you don’t have a financial advisor yet, finding one doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- If you’d like to do some general retirement planning on your own, use SmartAsset’s retirement calculator.
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