From Yahoo Finance · · 1m 10s
Student Loans Gut Retirement in 40s
Student loan debt cuts retirement savings by 45% for 40s earners.
In brief
Student loan debt cuts retirement savings by 45% for 40s earners. People in their 40s with student loans have 45% lower median retirement balances than debt-free peers. Originally reported by Yahoo Finance.
Student loan debt impacts retirement
Student loans quietly gut retirement savings especially for people in their 40s.
45% retirement gap for 40s debtors
People in their 40s with student debt have median retirement balances 45% lower than debt-free peers.
EBRI research shows debt effect
EBRI found 1 in 5 401(k) participants aged 25-69 have student loan debt.
Debt affects retirement contributions
Those with student loans are more likely to stop 401(k) contributions or cut them.
Employer match option for debtors
Secure 2.0 Act allows student loan payments to count toward retirement plan matching.
42% of companies offer benefit
42% of US companies currently offer student loan retirement matching benefits.
Potential savings boost
Universal adoption could add $11.2 billion to $20.2 billion in annual retirement matching.
First-time savers increase
Over 7,500 participants started saving in retirement plans for the first time since program launch.
What matters most
People in their 40s with student loans have 45% lower median retirement balances than debt-free peers.
