Recent research by Morgan Stanley Wealth Management underscores the pivotal role that a professional financial plan plays both in helping investors achieve financial long-term goals and bolstering their confidence and well-being amid market uncertainty.
Thirty-six percent of survey participants with a plan said they worry about saving enough, compared with 47% of those without a plan. On average, the former rated their investment value and financial health higher by 10 percentage points.
“Financial planning matters at every stage of life and level of wealth,” Anthea Tjuanakis Cox, head of financial planning at Morgan Stanley, said in a statement. “Our research confirms that a professionally created plan offers a roadmap to achieve financial goals — but perhaps the most compelling insight for us in this data is the positive impact it can also have on one’s life and sense of wellbeing.”
Ipsos Public Affairs conducted the survey in the 2024 fourth quarter among a random sample of 1,013 respondents across the United States, ages 25 to 75, with $250,000 or more in liquid household investable assets.
The survey found that 76% of investors with a formal financial plan wish they had started earlier. Only 28% developed a plan at the beginning of their career, while 68% waited until the need to save for retirement emerged — a significant gap between ideal financial planning behaviors and reality, Morgan Stanley noted.
Although 53% of respondents still in the workforce said they feel very confident in saving enough for retirement, only 36% said they feel similarly confident that they know how to do so.
At the same time, 66% lack confidence in achieving their long-term goals, rising to 68% of female investors, 70% of millennials and 72% of Generation Z.
Even though 97% of investors surveyed recognized the importance of financial planning, only 53% said they have a plan. Morgan Stanley said part of this disconnect lies in perceived barriers: Fifty-three percent cited high costs, 44% believe they can achieve similar results on their own and 38% said they lack assets.
Three-quarters of respondents, both with and without a financial plan, said undergoing the planning process with a professional is important, demonstrating, Morgan Stanley said, that the value proposition for professional guidance is well understood.
Financial planning deepens advisor relationships, according to the survey. Fifty-one percent of those with a plan meet with their advisor, compared with only 25% of those without a plan. Thirty-seven percent of advised respondents actively review advisor communications, versus only 20% of unadvised ones.
Morgan Stanley noted that this finding highlights a significant opportunity for advisors to enhance client relationships and engagement through comprehensive financial planning.
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