Student loan borrowers face the challenge of balancing debt repayment with saving for milestones like retirement. Employees over 50 with student debt have retirement balances 30% lower than peers without debt, while those 18-49 have balances 20% lower. The average federal student loan debt balance is $39,075, with monthly payments between $200 and $299.

Student loan debt significantly impacts retirement readiness, especially for older workers. Over 6 in 10 Gen Zers have reduced retirement savings due to debt, along with 46% of Gen X and 36% of boomers. Borrowers put an average of 22% of their income toward student loan payments, with the oldest Gen Z members allocating 30%.

Student loan debt leads to reduced emergency savings, higher exposure to financial shocks, and a constant financial balancing act. Borrowers are more likely to have medical debt, credit card balances, and other loans, affecting their ability to save for other goals. The impact of student loans extends beyond early career decisions, affecting financial confidence and well-being.

A provision of Secure 2.0 offers relief for student loan borrowers by allowing monthly payments to count towards employer-provided retirement account contributions. Employers can earn a tax break on matching contributions, but the availability of this benefit varies. Fidelity has seen high demand for this benefit, with over 200 companies adopting it, benefiting nearly 2 million employees.

Read more at Yahoo Finance: How student loan debt stymies retirement saving