The burden of student debt can impact financial wellness significantly, for employees of all ages. Allow your employees to pay down their student debt and at the same time save for their future with our proprietary Student Debt 401(k) Solution.
The student debt crisis takes a heavy toll
People in America are struggling with student debt, whether they’re in their 20’s or their 50’s. This is bad news for retirement plan participation. Out of the 81% of Americans making financial sacrifices due to student debt, a full 50% elected to repay their student debt rather than contribute to their retirement,* which then results in their looking out on potential employer matching contributions. Since student debt has a such a big impact on financial wellness, ACEC Retirement Trust is doing something about it.
*American Institute of CPAs, 2016.
Know the impact of student debt within your organization
How many of your employees are caught in America’s student debt crisis? Probably more than you think. Our Student Debt 401(k) Solution starts with an organizational assessment of student debt within your firm. What’s the total outstanding student debt by age, income and tenure? Delinquency rates? Average balances? Projection of total savings potential? Afforded to employees repaying their student debt through the new employer contribution structure?
An innovative design to help your employees pay student debt and save for retirement
The design of this ACEC Retirement Trust 401(k) program lets you amend your retirement plan so that you can make employer contributions to your employees’ retirement accounts when your employees make student debt payments. Your employees don’t have to forego retirement plan saving and you enjoy the tax benefit that comes with the employer contribution to your retirement plan. You can adopt the Student Debt 401(k) Solution as an enhancement to your retirement program or replace an existing matching contribution.
Download an example
From enrollment to management,
a turn-key program
After you establish eligibility, we handle the heavy lifting, such as “Enroll now” invitations, verification, reporting, as well as payment and contribution processing. Employees receive personalized evaluations, education and guidance based on their unique situation. Recommendations could include refinancing options such as more favorable terms and/or instant access to lower interest rates. Contact us to take advantage of this proprietary ACEC Retirement Trust program.
Hear what Terry Niemeyer, CEO of KCI Technologies, says about the ACEC Retirement Trust Student Debt Solution and how it has helped KCI attract and retain talent. A podcast from the ACEC Fall Conference | Listen to podcast
ACEC Retirement Trust members: Sign up for the Student Debt 401(k) Solution Click here to email us