Workplace benefits: It’s not a communication gap. It’s a translation opportunity.

For years, the retirement industry has framed the challenge the same way: Participants aren’t engaged enough. Employers need better communication. Advisors need to educate more.

But the latest Voice of the American Workplace research suggests something more nuanced—and actionable:

The partnership already exists. It just needs to be activated.

Employers and employees are not misaligned on retirement readiness. In fact, they’re remarkably aligned on what matters most:

• Competitive pay
• Strong 401(k) match
• Long-term financial security

At the same time, 93% of employers say retirement planning is a shared responsibility, not a handoff. And employees are signaling they’re open to that partnership—many rely on employer programs to guide financial decisions and value proactive support. This alignment creates the opportunity for defined contribution advisors to reinforce what is working well.

Exhibit 1: Employers and Workers Align on Financial Priorities

Similar Percentages of Each Group Agree on Pay, Match and Retirement Income

Source: Voice of the American Workplace Survey by The Harris Poll on behalf of Franklin Templeton. 2026.

From information delivery to outcome design

Here’s the tension:

• 81% of workers say benefits communication is strong
• Yet more than half feel overwhelmed and unsure how to act

At the same time:

• 88% want benefits explained in plain language
• 73% of employers report employees asking the same questions repeatedly

This is not a failure of effort. It’s a failure of translation.

Participants aren’t asking for more information. They’re asking for clearer direction—what to do next, how to improve, and where they stand.

This is where high-value advisors can differentiate themselves.

The real market dynamic: financial stress + receptivity

Workers today are navigating real pressure:

• 80% turn to their employer for help with financial worries
• Retirement timelines are extending, and financial milestones are moving out

At the same time, engagement signals are strong:

• 91% want to learn more about financial benefits
• Many say they might not be saving at all without features like auto-enrollment

This combination—pressure + openness—creates one of the most compelling advisory opportunities in years.

Where advisors can lead (five calls to action)

If the relationship between employer and employee is already collaborative, the advisor’s role becomes clear:
Turn alignment into action.

Here are five ways to do exactly that:

1. Simplify the path to the match

Focus your participant engagement on one essential behavior:

• Contribute enough to capture the full employer match

The research is clear: Small actions compound. And employees respond best when the message is simple, direct and actionable—not educational for education’s sake.

2. Reframe communication around “next best step”

Move away from:

• Plan features
• Investment menus
• Technical education

Move toward:

• “Here’s what to do this quarter”
• “You’re on track / off track”
• “Increase by 1% today”

Advisors who translate complexity into clear, repeatable actions will drive measurable engagement.

3. Conduct a QDIA¹ review with purpose

The data shows:

• Retirement readiness and personalization are nearly equal priorities in QDIA selection

This is a critical moment to revisit:

• Glidepath alignment with participant behavior
• Balance between growth, protection and personalization
• Role of guaranteed income or evolving target date fund (TDF) structures

👉 Call to action:

Re-engage sponsors in a formal QDIA review focused on outcomes—not just benchmarking. Ask “is the average participant using this QDIA on track to meaningfully replace their income?”

Exhibit 2: The Prominence of TDFs as QDIA Heightens the Need for a Defined TDF Selection Process

Retirement readiness (34%) and personalization (31%) are nearly equal priorities for plan decision makers.

Source: Voice of the American Workplace Survey by The Harris Poll on behalf of Franklin Templeton. 2026.

4. Reassess capital preservation in a new rate environment

• 75% of employers are re-evaluating their capital preservation option

• 68% expect to make changes in the next 12 months

With interest rates and participant behavior shifting, capital preservation is not a “set it and forget it” decision.

👉 Call to action:

Lead a capital preservation review conversation with plan sponsors:

• Stable value vs. money market
• Participant utilization trends
• Role in near-retirement confidence

This is an underutilized but highly visible area to deliver value.

5. Connect today’s financial stress to tomorrow’s retirement outcomes

Participants are prioritizing:

• Emergency savings
• Job security
• Near-term financial stability

Ignoring this reality weakens retirement engagement.

👉 Call to action:

Help sponsors integrate:

• Financial wellness tools
• Emergency savings strategies
• Behavioral nudges

Position the retirement plan not as a silo, but as part of a broader financial ecosystem.

A partnership worth building on

The most encouraging takeaway from this year’s research is not the challenges—it’s the foundation.

Employees trust their employers.
Employers are committed to supporting employees.
Both are aligned on financial security.

This level of alignment is rare—and valuable.

The advisors who win in this environment will not be those who provide more information.
They will be those who translate alignment into action, complexity into clarity and plans into outcomes.

How Franklin Templeton can help

At Franklin Templeton, we see this moment as an opportunity to support advisors in three ways:

• Translating research into practical plan design insights
• Delivering solutions across target date, capital preservation and income
• Supporting advisors in building stronger employer-participant engagement models

Because the future of retirement success isn’t about choosing between employer or employee responsibility.

It’s about helping both sides succeed—together.

Please visit Voice of the American Workplace Survey to access this year’s survey results.