Having a plan advisor helps retirement plan sponsors achieve better outcomes, offer more investment choices and better engage with employees — all at a reasonable cost, according to a recent report.

Eighty-seven percent of plan sponsors say having a plan advisor working with a workplace retirement plan leads to better retirement plan outcomes, Morgan Stanley says it found in a survey. Respondents included 350 plan sponsors at firms with 20 to 3,000 employees offering 401(k) plans across various industries in the U.S who work with a dedicated financial advisor with their 401(k) plan, have worked with a company in the last 12 months that offered a 401(k) plan or are currently selecting or managing the company 401(k) plan.

In addition, 88% of plan sponsors believe that a plan advisor gives access to “robust plan features with a range of investment options,” according to the survey.

Moreover, plans with advisors are also likely to have additional options, such as automatic matching and auto enrollment, Morgan Stanley says.

The survey also shows that close to 45% of plan sponsors working with a plan advisor say that 75% to 100% of eligible employees join the company 401(k) plan, compared to 33% of plan sponsors without a plan advisor.

At the same time, 95% of respondents believe that the fees related to having a plan advisor are worth the cost due to their benefits primarily in investment management, fiduciary guidance and compliance, according to Morgan Stanley.

The leading benefit for plan sponsors of working with an advisor, meanwhile, is peace of mind, the survey shows.

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