Employees who receive employer matches from student debt repayment programs are on track to gain thousands in retirement savings.
The 2026 State of Student Debt study from Fidelity Investments finds that these employees will see an additional $200,000 in savings for retirement, as their company helps pay down debt and offers an opening to save for long-term needs.
The number comes from the latest data by Fidelity’s Student Debt Retirement product. Since launching in 2024, employees enrolled in the benefit saw an average $1,900 in employer contributions based on student loan payments. By the time participants hit retirement age, this figure could grow to nearly $200,000.
Meanwhile, student borrowers report feeling greater financial strain as they struggle to pay down debt. The findings show that 32% of those who currently have student debt say they’ve delayed buying a home because of the loans. This sentiment was even more prominent for Generation Z and Millennial borrowers, at 37% and 36%, respectively.
The stress has cause emotional and mental turmoil for some. Fidelity’s research reports that 41% of student debt holders have lost sleep or felt anxious about their finances at least weekly.
Borrowers are also likelier to report an overall negative relationship with finances. Over a third of debt carriers use the word “stressful” to describe their relationship with money, while 67% say they feel overwhelmed when it comes to their personal finances.
“The burden of student debt takes not only a financial toll on borrowers, but an emotional one as well,” said Jesse Moore, head of student debt at Fidelity Investments, in a statement. “Across the tens of thousands of U.S. employers Fidelity works with, we’re seeing many borrowers forced to choose between paying down their debt and saving for future milestones. With more than half of borrowers still struggling to pay back their loans, this is a critical time for employers to consider benefit solutions that help their workforce achieve greater financial wellness.”
The findings align with participant data from the firm, Fidelity reveals. According to internal data, retirement plan balances among employees over the age of 50 are 30% lower for those who have debt and 20% lower for those ages 18 to 49.
Employers who offer student debt assistance can increase employee recruitment and retention, while providing a solution that affords financial stability for workers. Roughly half of borrowers (45%) say they would be more willing to stay with a company that offered these benefits, with 52% of Gen Zers and 47% of Millennials agreeing.