Student loan match program could add up to $20B annually to retirement accounts

An analysis published this week by the Employee Benefit Research Institute (EBRI) finds that a SECURE 2.0 provision allowing employers to match qualified student loan payments could add between $11.2 billion and $20.2 billion in 401(k) contributions annually for workers with student debt. The EBRI Issue Brief, “Understanding Who Would Benefit From a Student Loan Retirement Matching Program and by How Much,” examines which workers carry student debt, how it affects their defined contribution plan behavior and how much employer matching they are currently leaving on the table. The report was authored by Craig Copeland, director of wealth research at EBRI, and was supported with supplemental funding from Candidly. EBRI explained that it does not lobby or take positions on specific policy proposals. “Student loan debt can have an impact on retirement preparation that goes well beyond the size of the loan balance itself,” Copeland said in a statement. “This research shows the differences between those with and without student loans in participation in 401(k) plans, how much is contributed and ultimately how much is accumulated in these plans. “The fact that these differences appear to p...