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For years, workplace retirement plans focused primarily on helping employees save for retirement through automatic enrollment, employer matching contributions, and investment education. Those features remain important, but today's workforce is asking for something more: personalized financial guidance.
Employees face increasingly complex financial decisions throughout their careers. From managing debt and choosing investment allocations to determining when to retire, workers often need more than general education—they need advice tailored to their individual circumstances.
As retirement plans continue to evolve, many employers are recognizing that expanding access to financial advice can improve employee confidence, engagement, and long-term retirement outcomes.
Education and Advice Aren’t the Same
Retirement plan education has long been a cornerstone of participant communication. Educational materials explain concepts such as diversification, asset allocation, contribution limits, and the importance of saving consistently.
Financial advice goes a step further.
Advice takes an individual's unique financial situation into account and provides personalized recommendations designed to help them make informed decisions. Whether it's determining an appropriate contribution rate, selecting investments, evaluating retirement readiness, or creating an income strategy, advice is tailored to the participant rather than the general population.
Understanding this distinction matters because employees often need both. Education builds knowledge, while advice helps translate that knowledge into action.
Better Engagement Often Leads to Better Outcomes
One of the strongest arguments for expanding access to financial guidance comes from participant behavior itself.
According to T. Rowe Price's 2026 Reference Point report, participants who used the financial advice, educational resources, or digital planning tools available through their workplace retirement plan saved at rates 29% higher than participants who did not use those resources. They also had twice the average account balance, yet only 13.8% of participants currently utilize these services.
While many factors influence retirement success—including income, tenure, financial literacy, and saving habits—the findings suggest that participants who actively engage with available resources are generally more likely to develop positive retirement saving behaviors.
Other recent research points in the same direction. The TIAA Institute's 2026 The Value of Financial Advice report found that individuals who work with a financial advisor are more likely to exhibit consistent financial habits, with 92% reporting they save regularly compared with 75% of those without an advisor.
The study also found that advised individuals were nearly twice as likely to make regular retirement plan contributions and reported significantly higher confidence in their ability to handle emergencies, manage debt, and prepare for healthcare expenses in retirement. Importantly, the researchers emphasize these are associations—not proof that advice alone caused these outcomes—but they reinforce the connection between ongoing financial guidance and stronger financial behaviors.
The need for guidance may be growing. According to the 2026 EBRI Retirement Confidence Survey, worker confidence in having enough money to live comfortably in retirement fell to 64%, down from the previous year. At the same time, the survey found that only about four in 10 Americans currently work with a professional financial advisor, even as many others expect to seek guidance in the future. EBRI concluded that today's financial pressures—including inflation, debt, healthcare costs, and uncertainty surrounding Social Security—underscore the need for better planning tools and personalized guidance.
Workers Want More Than Investment Help
Today's employees increasingly view financial wellness as broader than simply selecting investments.
Questions about emergency savings, student loans, healthcare costs, debt management, Social Security, retirement income, and tax planning often influence retirement decisions just as much as investment performance.
The T. Rowe Price research also found growing interest in financial wellness resources and investing education, particularly during periods of market volatility. Participants increasingly sought information on investing, financial wellness, retirement planning, and saving for retirement, reflecting a desire for ongoing guidance rather than one-time education.
Employers that provide access to these resources can help employees navigate financial uncertainty while encouraging greater engagement with their retirement plans.
Benefits Extend Beyond Employees
Offering access to financial advice isn't simply an employee benefit—it can also support broader organizational goals.
Employees who feel financially secure often experience less financial stress, which numerous studies have linked to improved productivity, reduced absenteeism, and higher workplace engagement. Workers who are better prepared financially may also be better positioned to retire when planned, supporting workforce planning and succession strategies.
Although financial advice alone won't solve every financial challenge, it can become an important component of a comprehensive financial wellness strategy.
Technology Is Expanding Access
Historically, personalized financial advice was viewed as a service primarily available to high-net-worth individuals. Today, workplace retirement plans increasingly offer scalable solutions that make guidance available to a much broader population. Managed accounts, retirement income tools, digital financial planning platforms, interactive calculators, and virtual coaching allow participants to receive meaningful guidance regardless of account size.
Artificial intelligence and data-driven personalization are also helping providers deliver more relevant communications based on participants' age, savings rate, career stage, and retirement goals. These innovations are making personalized guidance more accessible than ever before.
Final Thoughts
Plan sponsors play an important role in encouraging employees to take advantage of available resources. Rather than simply offering financial education, employers should regularly communicate the availability of advice services, promote financial wellness programs throughout the year, and make it easy for participants to access guidance when major life events occur.
Monitoring participant utilization can also provide valuable insight into whether existing resources are meeting employee needs.
Finally, working closely with a knowledgeable retirement plan advisor can help plan sponsors evaluate the financial guidance solutions offered by their recordkeeper, understand the distinction between education and advice, and identify opportunities to improve participant engagement.
As employees face increasingly complex financial decisions, access to quality financial guidance and advice may become one of the most valuable benefits a retirement plan can provide.
Informational Resources: PlanSponsor.com: “Education vs. Advice: The Difference Matters” (June 1, 2026); T. Rowe Price: “2026 Reference Point” (accessed July 21, 2026); TIAA Institute: “The Value of Financial Advice” (May 4, 2026); Employee Benefit Research Institute (EBRI): “2026 Retirement Confidence Survey” (April 21, 2026).
Kmotion, Inc., 12336 SE Scherrer Street, Happy Valley, OR 97086; 877-306-5055; www.kmotion.com
©2026 Kmotion, Inc. This newsletter is a publication of Kmotion, Inc., whose role is solely that of publisher. The articles and opinions in this publication are for general information only and are not intended to provide tax or legal advice or recommendations for any particular situation or type of retirement plan. Nothing in this publication should be construed as legal or tax guidance, nor as the sole authority on any regulation, law, or ruling as it applies to a specific plan or situation. Plan sponsors should always consult the plan’s legal counsel or tax advisor for advice regarding plan-specific issues.
This material is intended to provide general financial education and is not written or intended as tax or legal advice and may not be relied upon for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel.