America’s Biggest Loan-related Problem Isn’t What You Think
While much has been said and written about student loan debt in America, less attention has been paid to another critical financial wellness challenge: 401(k) loan defaults. In this article, Custodia Financial’s EVP of Operations, George White, compares and contrasts student loan debt with 401(k) loan defaults, arguing that the latter should be considered just as—and perhaps even more—urgent by plan sponsors, based on both the magnitude of the problem and the fiduciary duty that plan sponsors have to take action. “While many employers monitor the current value of loans in their plan, it’s really the future value of these loans, and the lost retirement security they represent, that seems to be missing from today’s conversation.”
Read the Employee Benefit News article here.