INFOGRAPHIC
Two-thirds of employees say student loan repayments will derail retirement plans
financial pressures due to the resumption of payments .
Over one in 10 ( 12 %) employees ages 45 + currently have student loan debt and most of these individuals ( 61 %) agree the reinstatement of student loan payments has negatively impacted their financial stability and long-term planning . Another two-thirds ( 66 %) agree repayments will significantly affect their ability to save for retirement .
Employees ages 45 + with student loan debt have or are considering taking several steps to manage upcoming repayments – with some being more detrimental to their long-term financial strategy than others .
According to US Census data there are 140 million Americans aged 45 or older . With 12 % of this group having student loans according to this survey , there is a potential for nearly 17 million older Americans making financial decisions as a result of student loan payment resumption .
Due to the impact of student loan repayments on their long-term strategy , 85 % of employees ages 45 + with student loan debt would be interested if their employer offered a match to their loan repayments for retirement savings . However , only 16 % have sought professional advice to determine the best course of action in managing both their student loan payments and retirement savings .
Today , employees face myriad challenges that impact their long-term financial planning , with the timeliest one being the resumption of student loan payments . While many assume younger employees are
impacted the most , a new survey by the Nationwide Retirement Institute finds that even seasoned employees in America are experiencing significant
" It ' s impossible to ignore the long-term financial impact student loan repayments can have on employees across all generations . The good news is SECURE 2.0 Act now allows employers to provide matching retirement plan contributions based on the amount of an employee ' s student debt repayments – a provision Nationwide advocated for and is excited to further innovate on ," said Eric Stevenson , President of Nationwide Retirement Solutions . " Between student loans , interest rate increases and inflation , employees have a lot to navigate when planning for retirement . There is a strong business imperative for employers to help ."
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