How student loan debt stymies retirement saving

Core Insights - Student loan debt significantly impacts borrowers' ability to save for retirement, with older borrowers experiencing a 30% lower retirement balance compared to those without debt [1][2] - The average federal student loan debt balance is $39,075, with monthly payments ranging from $200 to $299, which resumed in October 2023 after a three-year pause [2] Group 1: Impact on Retirement - Student debt undermines retirement readiness, particularly for older workers who are in their peak saving years, leading to uncertainty about retirement timing [4] - Younger workers also face profound repercussions from not saving for retirement, as missing early 401(k) contributions results in smaller savings over time [4] - A significant portion of older Gen Zers (over 60%) and other generations have reduced or stopped their retirement savings due to student loan debt [4] Group 2: Financial Strain - Nearly all surveyed borrowers report that student loan balances hinder their ability to save for other financial goals, build emergency savings, or manage monthly expenses [5] - Approximately one-third of borrowers have delayed home purchases due to their student loans [5] - On average, borrowers allocate 22% of their income to student loan payments, with the oldest Gen Z members (ages 18-29) dedicating 30% of their income to this debt [6]