While more employees are participating in their workplace retirement plans, they are also cutting back on their account contributions and looking for financial guidance through the workplace, according to the study. Addressing employee needs and expectations around retirement plan support remains key to talent attraction and retention—the top-cited strategic financial priority for companies in 2025.

Some of the key findings of the study include:

Employees are reducing 401(k) contributions: While participation in 401(k) plans held steady year-over-year at 86%, financial stress is affecting retirement savings behavior. More employees are reducing 401(k) contributions because 39% are concerned about economic impacts related to inflation or recession. This is particularly pronounced among 48% of Gen Z workers.

Employees need financial wellness: Over eight in 10 employees (84%) believe their employers should more actively assist them with their financial issues, and is strongest among Gen Z (95%, vs. millennials: 87%, Gen X: 80% and baby boomers: 66%).

Professional financial guidance is a key differentiator: 69% of HR executives believe access to retirement planning assistance from financial professionals is a top or high priority for employees when choosing where to work. A majority of employees agree (54%)—and even more so among those who participate in their company benefits (60%), who are also less likely to say that they need to accelerate their financial planning efforts to make up for lost time (82% vs. 90).

Related: Financial literacy: 87% of employees say it’s a must-have benefit

When it comes to the most valued types of retirement planning assistance, there is clear consensus from the study around the need for more focused retirement planning. Employees' top 3 most valued types of retirement planning assistance include:

• Access to a financial advisor: 47%
• Goals-based retirement investment planning: 45%
• Retirement income solutions: 43%

“In the face of economic uncertainty, it is clear that comprehensive retirement benefits are essential for individual financial security, while also serving as a critical lever to retain top talent,” said Jeremy France, Head of Institutional Consulting Solutions at Morgan Stanley. “Our findings emphasize that modern workplace retirement plans go beyond simply offering a 401(k) and match; they now integrate ongoing financial advisory, investment planning and income solutions. This next generation of workplace retirement plans—especially those which include ongoing planning and consultancy support—are a strategic asset that can help companies foster employee loyalty.”