Student loan match program could add up to $20B annually to retirement accounts
EBRI findings highlight an opportunity for employers and plan sponsors to use student loan matching to close retirement savings gaps
The Employee Benefit Research Institute (EBRI) has found that a student loan match program could add up to $20 billion annually to retirement accounts. This is significant because many workers, particularly younger generations, struggle with student loan debt and may not prioritize retirement savings as a result. By offering a student loan match program, employers can help bridge the retirement savings gap and provide a valuable benefit to their employees.
This finding is particularly relevant for plan sponsors and employers in the local area, as many of their employees may be struggling with student loan debt. According to EBRI, student loan debt is a major obstacle to retirement savings, with many workers prioritizing debt repayment over retirement contributions. By offering a student loan match program, employers can help their employees make progress on both fronts. This can be especially important for workers in industries with lower average salaries, such as education or non-profit, where student loan debt can be a significant burden.
As employers and plan sponsors consider implementing student loan match programs, they will want to watch how the details of such programs impact their workers and their bottom line. Specifically, they will want to monitor participation rates, debt repayment outcomes, and retirement savings rates among employees who participate in the program. They will also want to consider how to communicate the program effectively to employees and how to integrate it with existing benefits and retirement plans. By doing so, employers can help ensure that their student loan match program is a success and helps to close the retirement savings gap for their employees.
Originally reported by housingwire.com. LodgeNews adds analysis for real estate & property readers.