Student loans and retirement are two major financial topics at the heart of employees’ financial concerns, and they not only have a crippling effect on each other but cause a ripple that negatively effects all other financial goals and challenges.
Who is affected?
About half of Millennials have student loans, and 79% of them say that paying off student loans negatively impacts their other goals. 1 On top of that, Millennials not only have their own loans hanging over them; they’re also worried about paying for their kids’ college education.
Older generations, like Gen X and Baby Boomers, feel the same way; so much that many are giving up their retirement contributions to pay for their kids’ schooling.
To give you some context, over a third of the workforce is made up of Millennials, 2 and the average student loan debt is around $30,000 per person.
How is it affecting employees?
Basically, employees are minimizing their retirement contributions because they’re focusing on paying off student loans, and...
To view this article in full, visit:
https://www.mysecureadvantage.com/for-employers/resource-center/articles/why-student-loans-and-retirement-cripple-each-other-2
