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Almost 50% of Employees Think Their Companies Should Offer This Benefit

Our recent survey of 1,000 full-time U.S. workers found that nearly half of employees agreed employers should focus on one thing. Let’s see what that is….

By Betterment Editors

Published Oct. 11, 2024

Almost 50% of Employees Think Their Companies Should Offer This Benefit Oct 11, 2024 2:07:41 PM Our recent survey of 1,000 full-time U.S. workers found that nearly half of employees agreed employers should focus on one thing. Let’s see what that is…. In our 2023 Retirement Readiness Annual Report, we surveyed 1,000 full-time U.S. workers to learn more about how retirement readiness and financial well-being have evolved over the last year. One theme stood out to us: Employees want more help from their employers with student loan debt. In fact, 49% of employees believe that employers should play a role in helping them pay off their student loan debt — this was felt most strongly among Gen Z (71%) That’s something to consider: Nearly half of employees think their companies should offer a benefit helping to pay student loans. It’s clear, employees want student loan benefits And there’s a good reason for this: 40% of workers currently have student loan debt that they’re responsible for paying down. 64% of borrowers said their student debt had impacted their ability to save for retirement. What’s more, our study also found that a 401(k) with an employer match is the number one most desired benefit. But what should employers do? Talk to your employees about their needs Before you jump into offering a new student loan benefit, first take a step back to gain a wider view of your employee’s needs. Ask your employees what they want in terms of a financial benefits package. A simple approach is to have employees rank benefits in order of most likely to use to least likely, and give them a chance to submit open-ended comments. You can start with a list of benefits, like this, for your employees to rank: 401(k) retirement plan 401(k) employer match 401(k) match on student loan payments Access to a financial advisor 529 college savings plan If you already offer some of these benefits, it’s still good to have employees rank their perceived value of them. Additionally, add other benefits to the list that you may consider offering. After you step back and look at the data, you can implement financial benefits that make sense for your company. Betterment at Work offers a variety of benefits to help you meet your employees’ needs Once you’re ready to implement new benefits for your employees, we’ve got you covered. And if you need help deciding what’s best, our team can talk you through the decision. You’ve got options. 401(k) match on student loan payments: When it comes to alleviating student loan debt, we offer an industry-first 401(k) student loan payment matching program. We’ve found that it solves a larger problem when we help employees save in a 401(k) while at the same time they pay down their student loans. Employees don’t have to choose between reducing their debt and saving for retirement. (See it in action: Watch our video to learn how you can offer a 401(k) match based on an employee's student loan payments.) 529 education savings plan: Forward-thinking employers can take it a step further and provide a state-sponsored 529 to save up for higher education costs. Many younger parents are doing three things at once: paying down their student loan debt, saving for their retirement, and saving for college for their kids. That’s a lot to balance. We offer a tax-advantaged 529 savings plan to help your employees tackle rising education costs. Access to a financial advisor: Take your Betterment 401(k) to the next level with Financial Coaching. Offer a benefits package that includes 1:1 financial guidance to help every employee better achieve their goals in and out of work. Award-winning 401(k) for small businesses: Get an affordable and customizable retirement plan designed to scale with you. After all, a 401(k) plan with an employer match is the most wanted benefit among employees. Plus, we’re trusted by some great companies Here are some of the many companies with a Betterment at Work 401(k)... Ready to offer financial benefits your employees want? Betterment at Work makes it easy for small and mid-market businesses to provide a scalable 401(k) plan with an employer match. Plus, our platform empowers you to offer additional benefits like 529 plans, student loan payment 401(k) matches, and 1:1 advice from our financial advisors. Set up a call today to learn more.

In our 2023 Retirement Readiness Annual Report, we surveyed 1,000 full-time U.S. workers to learn more about how retirement readiness and financial well-being have evolved over the last year.

One theme stood out to us:

Employees want more help from their employers with student loan debt.

In fact, 49% of employees believe that employers should play a role in helping them pay off their student loan debt — this was felt most strongly among Gen Z (71%)

That’s something to consider: Nearly half of employees think their companies should offer a benefit helping to pay student loans.

It’s clear, employees want student loan benefits

And there’s a good reason for this:

40% of workers currently have student loan debt that they’re responsible for paying down.
64% of borrowers said their student debt had impacted their ability to save for retirement.
What’s more, our study also found that a 401(k) with an employer match is the number one most desired benefit.

But what should employers do?

Talk to your employees about their needs

Before you jump into offering a new student loan benefit, first take a step back to gain a wider view of your employee’s needs. Ask your employees what they want in terms of a financial benefits package.

A simple approach is to have employees rank benefits in order of most likely to use to least likely, and give them a chance to submit open-ended comments.

You can start with a list of benefits, like this, for your employees to rank:

401(k) retirement plan
401(k) employer match
401(k) match on student loan payments
Access to a financial advisor
529 college savings plan

If you already offer some of these benefits, it’s still good to have employees rank their perceived value of them. Additionally, add other benefits to the list that you may consider offering. After you step back and look at the data, you can implement financial benefits that make sense for your company.

Betterment at Work offers a variety of benefits to help you meet your employees’ needs

Once you’re ready to implement new benefits for your employees, we’ve got you covered. And if you need help deciding what’s best, our team can talk you through the decision. You’ve got options.

401(k) match on student loan payments: When it comes to alleviating student loan debt, we offer an industry-first 401(k) student loan payment matching program. We’ve found that it solves a larger problem when we help employees save in a 401(k) while at the same time they pay down their student loans. Employees don’t have to choose between reducing their debt and saving for retirement. (See it in action: Watch our video to learn how you can offer a 401(k) match based on an employee's student loan payments.)
529 education savings plan: Forward-thinking employers can take it a step further and provide a state-sponsored 529 to save up for higher education costs. Many younger parents are doing three things at once: paying down their student loan debt, saving for their retirement, and saving for college for their kids. That’s a lot to balance. We offer a tax-advantaged 529 savings plan to help your employees tackle rising education costs.
Access to a financial advisor: Take your Betterment 401(k) to the next level with Financial Coaching. Offer a benefits package that includes 1:1 financial guidance to help every employee better achieve their goals in and out of work.
Award-winning 401(k) for small businesses: Get an affordable and customizable retirement plan designed to scale with you. After all, a 401(k) plan with an employer match is the most wanted benefit among employees.

Plus, we’re trusted by some great companies

Here are some of the many companies with a Betterment at Work 401(k)...

Ready to offer financial benefits your employees want?

Betterment at Work makes it easy for small and mid-market businesses to provide a scalable 401(k) plan with an employer match. Plus, our platform empowers you to offer additional benefits like 529 plans, student loan payment 401(k) matches, and 1:1 advice from our financial advisors.

Set up a call today to learn more.