3 – 4 pm ET/ 12 – 1 pm PT
Wednesday, July 31, 2019
Is Your Loan Program Getting in The Way of Financial Wellness?
solution?
demand a
attract attention...and
threat to retirement readiness
$2.5 Trillion
Shouldn't a
>> Learn More
3 – 4 pm ET/ 12 – 1 pm PT
Wednesday, July 31, 2019
Is Your Loan Program Getting in The Way of Financial Wellness?
solution?
demand a
attract attention...and
retirement readiness
threat to
$2.5 Trillion
Shouldn't a
>> Learn More
Research shows that 86% of participants default on their retirement plan loans post-separation, and that leakage from loan defaults is expected to be $2.5 trillion over ten years—representing about $300,000 in lost retirement security to the average participant.
Under ERISA, loans must be managed with the same prudence and oversight required of any plan investment. However, loans default at alarming rates, especially when participants lose their jobs. Industry experts believe that 401(k) loan defaults represent a ripening fiduciary jeopardy.
When employees lose their jobs, they may not be able to make their loan payments, putting their retirement plans at risk. RLE is an automated, low-cost program that repays an employee’s outstanding loan upon default and restores their 401(k) account in full.
