Older workers with student loan debt have less saved for retirement, Fidelity finds
Older workers with student debt have much smaller retirement account balances than their peers without the loans, a Fidelity report shows.
TL;DR
- Employees over 50 with student debt have retirement balances about 30% lower ($153,000) compared to those without debt ($221,000).
- Workers aged 18-49 with student loans have nest eggs about 20% smaller ($58,000) than debt-free individuals ($72,000).
- Student debt leads borrowers to delay retirement investing or contribute less, resulting in reduced savings.
- Around 9.5 million Americans over 50 carry education debt, averaging about $47,000.
- Student loan repayment can delay other life milestones such as travel, home purchases, or starting a business.
- Upcoming legislative changes could extend student loan repayment terms to 30 years, potentially perpetuating indebtedness.