Insured Retirement Institute Supports Financial Fitness Act to Address Student Loan Debt Crisis
Are you struggling to save for retirement due to overwhelming student loan debt? You’re not alone. The Insured Retirement Institute (IRI) is championing a new bill, the Financial Fitness Act, that aims to provide federal student loan financial aid recipients with the tools and resources they need to better plan for their future.
Introduced by Rep. Teresa Leger Fernandez, the Financial Fitness Act would create a centralized financial resources portal on the Department of Education’s website. This portal would offer valuable information on retirement planning and savings, in addition to the existing financial counseling for federal student loan recipients.
With student loan debt in the United States reaching a staggering $1.77 trillion, it’s clear that many Americans are struggling to save for retirement. According to a study by Fidelity Investments, 79 percent of respondents believe that student loan debt is hindering their ability to save for retirement. On average, those with student loan debt save 6 percent less for retirement compared to those without.
IRI’s research has shown that individuals over the age of 45 owe the majority of student loan debt, and many millennials are not saving for retirement at all due to their debt burden. The SECURE 2.0 Act of 2022 offers a new opportunity for individuals with student loan debt to start building their retirement savings, and the updates proposed by the Financial Fitness Act will help them take full advantage of this opportunity.
In addition to supporting the Financial Fitness Act, IRI is advocating for the inclusion of recipients of the Department of Labor job training and apprenticeship programs in the educational portal updates. This amendment would ensure that all new entrants to the workforce have access to the information they need to make informed retirement savings decisions.
By supporting the Financial Fitness Act and advocating for important amendments, IRI is working to empower Americans burdened by student loan debt to take control of their financial future. With the right tools and resources, you can overcome the obstacles of student loan debt and start planning for a secure retirement.
