Student Loan Borrowers Are Behind in Retirement Savings Compared to Non-Borrowers
New data from the Employee Benefit Research Institute (EBRI) shows that student loan borrowers are saving less for retirement than workers without such debt. While younger borrowers participate in retirement plans at lower rates, middle-aged borrowers show higher participation but still contribute significantly less. For example, those aged 45 to 49 have saved nearly 46% less compared to their non-borrowing peers. The report highlights that across income levels and age groups, student loan borrowers tend to set aside between 12% and 14% less for retirement than others. The largest contribution gap is among those earning $100,000–$199,999 annually, who contribute a median of 23% less. This disparity compounds over time due to lower initial contributions. Financial experts suggest that older borrowers may need to prioritize paying off student loans before retirement, which could further strain their savings strategies.
Topics: debt management financial planning retirement savings student loans