Plan LoansSeptember 18, 2020 | Retirement Education
Your company-sponsored retirement is the core of your employees' financial future. It can provide your employees a retirement income stream, which will allow them to stop working – that is, if they properly fund it.
Unfortunately, a majority of American workers aren't contributing what they should to their retirement plans. But what's making the problem worse is the use of retirement plan loans. If a participant takes money meant for the future and uses it now, whether they pay back the loan or not, their financial future suffers. While "borrowing from yourself" seems appealing, it draws from an already underfunded area of someone's life.
A healthy corporate financial culture is one that doesn't only discourage plan loans, but one that helps employees find alternative financial wellness solutions. The resources in this mini-campaign focus on loans and the negative impact they can have on participant’s retirement investments. If your plan allows for loans, and/or if you have a significant percentage of plan participants who have taken a loan, share these materials with them to help educate them on the impact the loan may have on their financial future.