Here’s Some Financial Advice: Your Workers Will Pay for It

A sizeable percentage of American workers aren’t just open to getting personalized financial advice through their employer — they’re willing to pay between $25 and $99 per hour for it. That’s according to the most recent DC Participant Planscape report from Escalent, a research, data analytics and advisory firm.

The research on the state of defined contribution (DC) plans showed the enthusiasm for employer-sponsored investment advice is particularly keen for younger workers.

Across all demographics, 45% of the 4,000 survey participants said getting help investing within their retirement plans was the biggest benefit of having access to employer-sponsored advice models. One-on-one interactions with financial professionals (40%) also was rated highly.

Respondents also generally agreed that such guidance helps them:

• Reduce financial stress;
• Determine contribution levels that align with personal goals; and,
• Get direction during periods of market volatility.

A Price Range That’s Just Right

When respondents were asked how much they would be willing to pay for investment advice offered via their employers, the majority put the “acceptable range” between $25 and $99 per hour.

“[That price range for advice was deemed most proper,] as participants would begin to question its quality below $25 and deem it too expensive above $99,” the report stated. “In fact, the optimal price is $48 — the precise intersection between when participants consider it becoming a bargain and expensive.”

Millennials were most interested in this paid advisory model, with 52% showing a preference to it. That figure is up from Escalent’s 2024 (45%) and 2023 (34%) reports. While digitally savvy and resource rich, this generation also expressed a preference to more personal support, as they showed decreased usage of:

• “Adviced” models via online providers and firm representatives (37% in 2025 vs. 43% in 2023); and,
• Self-directed asset management approaches (11% in 2025, 15% in 2024 and 23% in 2023).

Overall, retirement plan participants who are less confident in their ability to reach their savings goals “are quick to stress education, enhanced digital tools and access to customized advice as opportunities for helping them feel more on track,” said Sonia Davis, a senior product director in Escalent’s Cogent Syndicated division.

“This underscores the importance of providing ongoing education, one-on-one guidance, and improved online tools and capabilities in the workplace,” she said.

Here’s how you can help ensure organizational workers get the financial guidance that’s right for them.

Why You Need to Lead the Charge

Student debt, higher housing costs, market uncertainty and the reality that their retirement security primarily rests on DC plans are just some of the reasons for younger workers’ financial anxiety, said Kevin Crain, the executive director of the Institutional Retirement Income Council, a nonprofit think tank.

“The demand for guidance is warranted by the complexity to manage all of this on their own,” he explained.

According to the Escalent report, millennials and workers in Generation Z are significantly more likely to express frustration when faced with examining myriad resources and trying to find answers to financial questions such as:

• What is my ideal contribution rate?
• How can I find a retirement plan adviser?
• What is the proper cost for retirement plan advice?

Therefore, the experts interviewed for this article agreed retirement plan providers must work even harder to address workers’ concerns of “I don’t know” or their fears of losing money or outliving their savings (the latter of which is a particular concern of Baby Boomers and some Gen Xers).

Become a Financial Well-Being ‘Activist’

Crain stated total rewards (TR) professionals have traditionally focused on education (e.g., seminars, online education, retirement plan tools) within their financial well-being offering.

“Those efforts were important first steps but unconnected to participant actions,” he said.

Crain advised TR professionals to become financial well-being “activists,” citing opportunities to:

• Shift from education-only to advice-enabled. Pair planning tools and education content with access to a human advisor with onsite seminars and one-on-ones, virtual appointments or integrated advice through the recordkeeper.
• Connect advice to actionable behavior. Ensure resources and guidance include how participants can act easily for savings rates, investment allocation and distribution decisions.
• Integrate financial wellness programs. Link retirement advice offerings with student debt support, emergency savings options and budgeting tools so participants can pursue holistic financial wellness.

To build and implement a meaningful program, he also recommended that employers:

• Use employee surveys, recordkeeper data and adviser feedback to target who is struggling most with employer-provided financial resources and in what ways.
• Design a multi-channel access program, including self-service tools, in-person and online seminars, access to human advisors, and targeted proactive communications by age group, income levels and other segmentation.
• Make advice available at enrollment, during annual healthcare enrollment, around market events and when life events occur.
• Evaluate program progress through metrics such as advice uptake, contribution increases, improved diversification, and participant stress or confidence scores.
• Refine the program “based on what moves the needle.”

Double-Sided Benefits

The current state of financial well-being, as amplified by the Escalent report, comes as no surprise to Cara Macksoud, the managing director and CEO of Money Habitudes, an educational resource for financial professionals and HR/TR practitioners. She said when it comes to financial decisions, people often fear they are “not smart enough” or “they will make a mistake.”

“The reality is that many individuals’ financial decisions are right for the moment, and those decisions are allowed to be revisited, adjusted and improved later,” Macksoud said. “[TR pros should help these individuals see that] giving themselves that grace is part of becoming financially well.”

According to Escalent’s Davis, when employers place an emphasis on — and deliver enhancements to — their financial well-being programs:

• Workers become more fiscally responsible and financially prepared for retirement; and,
• Hiring and retention metrics improve as those workers feel more financially secure.

(Recent articles from The Washington Post, Technori and Yahoo Finance speak to those win-win benefits.)

“[The Escalent research found] over half of all plan participants consider financial wellness programs an influential benefit when mulling new career opportunities,” Davis said. “[Workers see them as] a key factor for remaining at their current employers and valuable to their ongoing financial decision-making.”

Editor’s Note: Additional Content

For more information and resources related to this article, see the pages below, which offer quick access to all WorldatWork content on these topics:

• Employee Benefits
• Total Rewards
• Well-Being