Morgan Stanley survey: 45% of sponsors rank 401(k) education among their top three concerns

Morgan Stanley's 2026 Retirement Plan Survey found that 93% of plan sponsors ranked defined contribution plans among the benefits employees value most, tying with healthcare coverage, PLANADVISER reported.

The share naming the DC plan as the single most valued benefit rose to 34% from 15% in Morgan Stanley's prior retirement study, conducted in 2024.

Forty-five percent of sponsors placed helping employees understand the 401(k) plan among their three most important concerns, up from 32% in 2024. Forty percent gave that ranking to maintaining a competitive benefits program, so comprehension of the plan now sits ahead of benefits competitiveness in sponsors' answers.

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

France framed the gap as a question of relevance rather than volume. "The answer is not just giving them more information—it's more relevant education and personalized guidance," he wrote. Advisers, he said, can help sponsors "convert education into practical next steps, tailored to their employees' unique needs," noting that someone enrolling for the first time needs different guidance than someone nearing retirement. PLANADVISER reported that France sees an opportunity for advisers to help sponsors build stronger plans and make sure employees understand them.

A separate Voya Financial benchmark, its America's Financial Confidence Index, drew on a survey of 4,097 benefits-eligible U.S. employees ages 25 through 64 who participate in workplace retirement plans, conducted between June 22 and July 5. Respondents averaged 67 out of 100 on financial confidence and 62 out of 100 on the financial behaviors needed to reach their goals. As PLANADVISER described the report, building employees' confidence in their 401(k) also appeared to improve their overall financial confidence.