Younger workers aren’t just open to getting financial advice through their employer—they’re willing to pay for it.
That’s according to Escalent’s latest DC Participant Planscape research, which found that enthusiasm for employer-sponsored investment advice is strongest among millennials and Gen Z participants, but interest is growing across all generations, including older Gen Xers and second-wave baby boomers.
Nearly half (46%) of respondents said they want help deciding how to invest their retirement savings—the top reason participants seek workplace financial guidance. Others cited reducing financial stress, determining contribution levels that align with personal goals and getting direction during periods of market volatility. About one in four also said they’re interested in holistic financial planning that extends beyond their retirement plan.
See also: How employers should address employees’ 401(k) concerns
When it comes to price, participants are pragmatic. They said they’d pay between $25 and $99 per hour for employer-sponsored investment advice. Anything cheaper raised concerns about quality, while fees above $99 felt too expensive. The preferred rate, according to the survey, was $48 per hour.
That growing appetite is also showing up in behavior. More than half of millennials said they’re now working with a traditional financial advisor, up from 45% in 2024 and 34% in 2023. Meanwhile, fewer participants in their 30s and early 40s are relying solely on online tools or self-directed investing, according to Escalent.
Advisors are paying attention to the shift. Fifty-eight percent of DC advisors said they are pursuing a holistic management approach that connects participants’ retirement accounts with their broader financial picture. More than four in 10 DC producers also view plan participants as a meaningful revenue opportunity, offering dedicated wealth products and coordinating advice with recordkeepers to ensure alignment.
The findings are based on an online survey of 4,000 DC plan participants who are actively contributing to a plan or have at least $5,000 left in a former employer’s plan.
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