HOUSTON--(BUSINESS WIRE)--Three out of four (75%) borrowers surveyed said that resuming student debt payments will impact their ability to save for retirement, according to new insight released by Corebridge Financial and Morning Consult. The poll also showed that in order to make these payments beginning in October of this year, more than one in five borrowers expect to reduce savings overall (29%), for emergencies (29%) and retirement (22%).
“Many Americans are likely to feel increased pressure on their personal budgets once student loan payments resume,” said Terri Fiedler, President of Retirement Services at Corebridge Financial. “Even with the new financial stress, borrowers can still take action to save for retirement and a financial professional can help. Whether it’s evaluating your monthly expenses to streamline charges or exploring student loan forgiveness, every dollar matters when it comes to saving for the retirement you want.”
The new Corebridge survey also shows how student loan debt could impact the financial security of women with 60% saying they do not expect to be able to afford making payments in October compared to 39% of student loan borrowers who are men. Women (5%) were also three times less likely compared to men (16%) to have put their disposable income from paused payments toward retirement, only compounding the situation.
Additionally, while four in five borrowers expect higher overall stress, financial stress and impacts on financial security, borrowers earning less than $50,000 expect the most challenging road ahead:
- 77% say that payments will affect retirement savings
- 67% say they will probably or definitely not be able to afford to make payments toward student loans
- 53% expect to miss one or more payments and 38% expect to default on the loan
This poll was conducted between August 16-24, 2023, among a national sample of 2,112 adults with federal student loans. Results from the full survey have a margin of error of +/- 2 percentage points and were weighted to approximate Americans ages 18+ with student loan debt.
About Corebridge Financial
Corebridge Financial, Inc. (NYSE: CRBG) makes it possible for more people to take action in their financial lives. With more than $370 billion in assets under management and administration as of June 30, 2023, Corebridge Financial is one of the largest providers of retirement solutions and insurance products in the United States. We proudly partner with financial professionals and institutions to help individuals plan, save for and achieve secure financial futures. For more information, visit corebridgefinancial.com and follow us on LinkedIn and YouTube.