PLANADVISER - July/August 2022 - 4

data points //
An Adviser's Value
Most plan sponsors agree that a dedicated adviser delivers better outcomes
P
lan sponsors that work with a
dedicated financial adviser for
their workplace retirement plan
see these professionals as partners in
improving outcomes, according to a
recent study, " The Value of a Financial
Advisor, " from Morgan Stanley at Work.
The vast majority of the 350 survey
respondents said the adviser delivers
better
outcomes
(87%),
encourages
participation (86%), provides support
for answering employee questions
(92%) and is worth the cost (95%).
The survey's results also suggest
that plan sponsors value peace of
mind, with 28% saying oversight on
investment management was the main
reason they have an adviser serve
their 401(k) plan. Because sponsors
report that compliance and fiduciary
guidelines are critical concerns-75%
and 67%, respectively-it makes sense
they would welcome the oversight, the
study report observes.
For plans that currently use a dedicated
financial adviser, 85% reported
that most of their eligible employees
are on track for retirement, while plans
without such an adviser noted a lack
of insight into retirement readiness.
When it comes to employee participation,
44% of sponsors that provide a
dedicated financial adviser said 75% to
100% of eligible employees participate
in their 401(k) plan.
These outcomes coincide with data
from the 2021 PLANSPONSOR Defined
Contribution
Plan
Benchmarking
Survey indicating that 53.7% of plan
sponsor respondents have worked with
the same adviser for more than seven
years-suggesting a high level of satisfaction
with the service.
The Morgan Stanley survey found
that businesses of different sizes prioritized
different needs. Businesses with
over 3,000 employees cited needing
investment oversight (37%), and midsize
businesses with 20 to 100 employees
emphasized the need for guidance on
plan design (20%). -DJ Shaw
3.1% 6.4%
1-2 years
Value Propositions of an Adviser
n	Agree n	Disagree n	No opinion
Is worth the cost
95%
Provides peace of mind as to regulatory concerns
Helps in working with the recordkeeper or TPA
Provides support in addressing employees' questions
Helps the leadership make critical decisions
Helps with plan design as the company scales
Provides financial education and tools to employees
Delivers better plan outcomes for our company
Encourages eligible employee participation
93%
92%
92%
92%
91%
90%
87%
86%
Provides peace of mind as to participants' data security 86%
Results in more employees on track for retirement
Is a benefit that helps attract and retain talent
86%
85%
Source: " The Value of a Financial Advisor, " Morgan Stanley at Work
Time Plan Sponsors Worked With Their Adviser
53.7%
15.0% 18.5%
< 1 year
3-4 years
5-7 years
Source: 2022 PLANSPONSOR DC Plan Benchmarking Survey
>7 years
3.3%
Unsure/
don't know
4%
5%
7%
4%
7%
5%
7%
7%
7%
8%
7%
3% 2%
3%
3%
1%
4%
2%
5%
6%
6%
6%
6%
8%
4 | planadviser.com July-August 2022
http://www.planadviser.com
PLANADVISER - July/August 2022

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