Retirement Plan Advisors Are Well Worth Their Fees: Survey

Plan sponsors in a study released this week by Morgan Stanley at Work reported a positive effect and value in having a plan advisor supervise their workplace retirement plan to boost participation and outcomes.

Plan sponsors cited peace of mind as a leading benefit for hiring plan advisors, according to the research. Doing so eases internal concerns, adds value to the participant experience and decreases the pressure of administrative tasks. Those with advisors overwhelmingly said the cost was worth it.

Plan sponsors cited investment management as the primary reason they consider advisory services, followed by guidance on fiduciary and regulatory matters. They also viewed relationship building — including accessibility, responsiveness and consistency — as key in growing corporate retirement plans.

“Financial advisors are an often-overlooked resource that can enhance and support the work plan sponsors do, while forging long-term, valuable relationships with their most mission-critical talent,” Anthony Bunnell, head of retirement for Morgan Stanley at Work, said in a statement.

Morgan Stanley has been investing heavily in the retirement plan channel since it bought stock-plan administrator Solium Capital, now Shareworks by Morgan Stanley, in 2019.

“As we’ve said before, we see the channel as a funnel for client and asset acquisition to sustain growth going forward,” Morgan Stanley CEO James Gorman said on an earnings call in January. We now have over $500 billion of unvested assets, and expect to retain an increasing proportion of these assets as they vest.”