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...
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