Morgan Stanley survey finds 93% of employers rank 401(k)s among employees' top five benefits

Morgan Stanley's 2026 Retirement Plan Survey found that 93% of employers rank defined contribution plans among employees' top five benefits, tied with healthcare, 401(k) Specialist reported. Paid time off drew 79%, work-from-home flexibility 51% and flexible work schedules 42%.

A third of plan sponsors now believe the DC plan is employees' single most valued on-the-job benefit, double the share in the 2024 survey.

Asked how they measure the plan, 72% named utilization rates, 53% employee satisfaction, 47% participant savings rate and 37% the share of participants receiving the maximum match. Utilization is an engagement count; savings rate and full-match capture are closer to readiness measures, and they drew the two smallest shares.

Helping employees understand the plan now ranks as a top concern for 45% of respondents, up from 32% in the 2024 survey. Maintaining a competitive benefits program followed at 40%, helping employees save enough for retirement at 29%, and managing costs at 27% for employees and 26% for the company.

"Retirement benefits are having a marquee moment," said Jeremy France, head of Institutional Consulting Solutions at Morgan Stanley. "When plan sponsors say they think employees value 401(k)s on par with healthcare, it signals a fundamental shift in how we define both financial security and workplace benefits." France added that plan design is only half the equation, and that helping people understand, engage with and use the plan is what separates decent benefits from key differentiators.

More than 70% of sponsors rely on enrollment meetings and online review and analysis tools, part of a mix that includes digital tools, education, group sessions and one-on-one support.