Much has been made of student loan debt repayment — and also of the need to save for retirement, and the importance of starting as early as possible. What’s a millennial — or Gen Y member — to do? A recent Forbes article has a suggestion.
Student loan debt affects a significant portion of the U.S. population. According to iontuition, more than 40 million of us have student loan debt, and almost 80% of those it recently surveyed would like to work for an employer that offered a benefit that would help them pay off their loans. Almost half of those in its study said they would rather have such a benefit instead of a 40(k).
Both goals are essential, says Forbes contributor John Wasik; still he posits that saving for retirement should be a higher priority. And he argues that it is possible to pursue both pursuing a balanced approach between setting money aside for retirement and paying down loan debt.
Wasik adds that automatic retirement savings plans, as well as efforts to help those with student loan debt understand the ways in which compound interest can benefit a saver, also will help prevent greater retirement security from being part of what those with outstanding balances sacrifice to pay their outstanding balances.
A study by New York Life of pre-retirees between ages 50 and 62 with household income of at least $80,000 bolsters Wasik’s arguments. New York Life found that those who participate in automatic retirement savings vehicles evinced higher confidence about their retirement than those who saved in other ways. And 25% expressed the wish that they had begun saving at least a decade earlier than they did.
Student loan debt affects a significant portion of the U.S. population. According to iontuition, more than 40 million of us have student loan debt, and almost 80% of those it recently surveyed would like to work for an employer that offered a benefit that would help them pay off their loans. Almost half of those in its study said they would rather have such a benefit instead of a 40(k).
Both goals are essential, says Forbes contributor John Wasik; still he posits that saving for retirement should be a higher priority. And he argues that it is possible to pursue both pursuing a balanced approach between setting money aside for retirement and paying down loan debt.
Wasik adds that automatic retirement savings plans, as well as efforts to help those with student loan debt understand the ways in which compound interest can benefit a saver, also will help prevent greater retirement security from being part of what those with outstanding balances sacrifice to pay their outstanding balances.
A study by New York Life of pre-retirees between ages 50 and 62 with household income of at least $80,000 bolsters Wasik’s arguments. New York Life found that those who participate in automatic retirement savings vehicles evinced higher confidence about their retirement than those who saved in other ways. And 25% expressed the wish that they had begun saving at least a decade earlier than they did.
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