Retirement benefits have surged in importance among American workers, according to a new Morgan Stanley survey that shows defined contribution (DC) plans now rival healthcare as the most prized workplace benefit. The 2026 Morgan Stanley Retirement Plan Survey found that 34% of plan sponsors believe the DC plan is employees' most valued benefit, up from just 15% in 2024—a more than twofold increase in two years. Additionally, 93% of respondents ranked DC plans among the top five benefits, placing them level with healthcare for the first time.
The survey, conducted between July and August 2026 by independent research firm 8 Acre Perspective, polled 200 retirement plan sponsors at organizations with at least $50 million in DC plan assets. Respondents were investment decision-makers responsible for plan design, investment lineups, and participant engagement. The findings signal a fundamental shift in how employees view retirement benefits, and they raise the stakes for plan advisors who must now deliver more than just investment oversight.
The education gap
The surge in perceived value comes with a significant downside: it raises expectations. Forty-five percent of plan sponsors cited helping employees understand their DC plan as a top concern. Plan sponsors have long wrestled with the gap between offering a strong plan and ensuring participants actually use it effectively. As more Americans approach retirement age, employers are under mounting pressure to move beyond compliance-minded plan management toward active participant engagement and personalized financial education.
Between economic volatility, increased demand for personalized financial guidance, and mandates from the SECURE 2.0 Act of 2022, plan sponsors in 2026 are experiencing heightened pressure to improve participant engagement and retirement readiness. Financial advisors who serve plan sponsors are increasingly expected to bring participant-facing solutions to the table, not just investment lineup reviews.
Advisors at the center
Morgan Stanley's findings place financial advisors and consultants at the heart of how plan sponsors are responding to this moment. According to the survey, 69% of plan sponsors rank their investment advisor or consultant as one of the top three most valuable resources in assessing their plan's investment lineup. That finding aligns with broader industry data. A September 2026 Fidelity Investments survey of 1,311 plan sponsors found that 93% work with an advisor as they navigate plan design and investment decisions, market complexity, and long-term retirement plan strategy.
Fidelity's 17th annual Plan Sponsor Attitudes Study further found that employee education and advisor-managed accounts each tied as the third most frequently added service among sponsors. The convergence of these findings points to an industry where advisors are being asked to do more and where clients are prepared to reward those who deliver on the full scope of that expanded role. As Cerulli research on pre-retiree demands suggests, flexibility and guarantees are becoming central to DC plan design.
What plan sponsors want
Jeremy France, Head of Institutional Consulting Solutions at Morgan Stanley, said: "Retirement benefits are having a marquee moment. 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: "Plan design is only half the equation. Helping people understand, engage with and use their plan is what will elevate decent benefits to key differentiators."
That message resonates at a moment when the retirement plan advisory market is increasingly competitive. As consolidation continues to reshape the RIA and broker-dealer landscape, advisors serving plan sponsors face greater scrutiny from clients who want demonstrable results—not just process. A June 2025 Cerulli Associates report found that 63% of active 401(k) participants do not have a financial advisor, while 52% of mass-affluent participants without an advisor say their retirement savings account provider is their primary source of retirement planning guidance. This gap underscores the opportunity for advisors to step in, particularly as state mandates and plan complexity push more small-business plans into advisors' laps.
The road ahead
The Morgan Stanley survey arrives as the retirement plan industry is navigating a pivotal transition from awareness of the need for retirement income solutions toward practical implementation. The Investment Retirement Income Council projected in late 2025 that 2026 would mark a significant period when plan sponsors move from exploration to execution on in-plan retirement income solutions. For advisors, this means the bar is rising: they must not only manage investment lineups but also deliver participant education and retirement income strategies. As Social Security COLA adjustments and DC-to-wealth conversion gaps continue to shape the landscape, the ability to provide holistic guidance will be a key differentiator.
