Financial advisors continue to gain importance to employees: Nearly 3 in 5 employees now rank retirement planning assistance from financial professionals as a high priority when choosing where to work-including 25% who say it’s their top priority.Financial wellness programs gain in popularity: Nearly 9 in 10 HR leaders (89%) now say they offer financial wellness programs (a 10-percentage point gain over 2021).Similarly, 92% of employees view retirement planning assistance as a priority when choosing where to work. Retirement assistance and retention are increasingly linked: 84% of HR leaders now view retirement planning assistance as a high or top priority in retaining current employees, up from 76% last year.

Gen Z (78%) and Millennials (80%) especially say they had to scale back on contributions compared to their Gen X (58%) and Boomer (40%) counterparts.

And employees continue to scale back retirement contributions-especially younger cohorts: 66% of employees (up from 62% in 2022) have reduced contributions to their accounts, citing inflation and/or concerns of a recession-particularly to 401(k) plans (33%), long-term savings (28%), and emergency and short-term savings (28%).Financial stress is a key concern for employers and employees alike: More than 83% of HR leaders worry that employees’ financial issues could impact their productivity, while 66% of employees agree that financial stress is negatively affecting their work and personal life.Morgan Stanley at Work today released the latest findings from its third annual State of the Workplace Financial Benefits Study, which reveals how employees are responding to financial challenges when it comes to their decisions around financial wellness and retirement benefits: The importance of role of the financial advisor linked to retirement planning increased.Financial wellness benefits saw popularity jump year-over-year.Amid economic obstacles, employees continue to scale back on retirement contributions-especially Millennials and Gen Z.

HR leaders concerned that employees struggle to stay productive at work due to outside financial stressors.

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