As financial, regulatory and retirement landscapes grow more complex, so do the needs of 401(k) plan sponsors – 80% of whom leverage consultants to help maintain competitive benefits, engage employees and fulfill fiduciary responsibilities, according to Morgan Stanley's 2024 Retirement Plan Survey. And with retirement planning support and financial advice among the most in-demand employee financial benefits, plan sponsors are seeking a greater breadth and depth of solutions.

The survey indicates a shift in plan sponsor preferences and attitudes toward investment product offerings and employee education and engagement. Nearly half of plan sponsors are now considering investment managers who "take on more fiduciary responsibility" type of manager. They are also focused on expanding investment options, with 41% now including retirement income solutions. And with educating plan participants more important than ever, many plan sponsors are outsourcing—with 47% relying on their consultants to provide education resources.