Student Loan Debt & the Impact on Retirement Savings

Recent news reports have highlighted an issue that many Americans struggle with, and when looking at the underlying data, it doesn’t appear to be getting better any time soon. According to CNBC, in May of 2019, up to 84% of American adults report that student loans are negatively impacting their ability to save for retirement.  Also, according to the Board of Governors of the Federal Reserve system in 2019, close to 40% of Americans could not cover a $400 emergency expense without borrowing. 

These issues can have an impact on employees as they attempt to participate in employer-sponsored retirement plans.

At Multnomah Group, we recently presented a webinar titled “Student Loan Debt, Financial Health, and Savings Rates.” As a firm, we are helping educate our clients that are looking to improve their employees’ financial wellness. Our goal was to inform clients of the issues impacting their employees, provide information regarding the different approaches that plan sponsors are using to address these issues, and help evaluate the various solutions that are popping up among service providers.

There are many potential areas where we believe supporting employees on these issues can have a positive impact.

  • Impact on plan participation
  • Engagement with early-career employees
  • Increased retention

At the same time, we believe plan sponsors should be cautious in rushing in to place a quick fix because it is conveniently offered by your service provider or seems to solve a current pain point among employees.

For more information on how you can support your employees who may be impacted by the debt and savings crisis, please contact your Multnomah Group consultant.


Multnomah Group is a registered investment adviser, registered with the Securities and Exchange Commission. Any information contained herein or on Multnomah Group’s website is provided for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Multnomah Group does not provide legal or tax advice.

Comment On This Article