Student loan debt support and 529 plans could be the next employee benefit that everyone is asking for

But more and more financial advisors are trying to encourage their clients to see their finances more holistically, with an emphasis on making a plan that allows them to pay off debt while also saving for the future. In turn, more and more employers are embracing a more customized approach to financial wellness and benefits for workers.

This week, Betterment at Work announced a new student loan management solution, alongside its acquisition of 529 company Gradvisor. While the roboadvisor has built its business around helping people save for the future, this news points to how essential it is for financial services companies to cater to all aspects of their customers’ lives. And in order to truly comprehend the realities of saving for retirement, we must also address the reality that nearly 45 million Americans collectively own $1.7 trillion worth of student loan debt.

The new student loan management tool will allow Betterment 401(k) holders to to view their loans and retirement fund in one place. Betterment at Work will also offer personalized advice for student debt repayment and options for deducting loan payments directly from an employee’s paycheck.

Could student loan repayment be the next big workplace benefit?

In the war for talent, employers are offering a wide range of benefits to woo employees. Somewhat surprisingly, there are still only a handful of companies that offer any kind of student loan repayment program.

Betterment at Work highlights that while 86% of young employees state they would remain in a job for at least five years if a company provided student loans assistance, only 8% of employers have these types of programs. As companies struggle to attract and keep new employees, student debt is beginning to creep into the conversation.

In a news release, Kristen Carlisle, general manager of Betterment at Work, points out that providing programs to help employees save can incentivize employees to stay with a company. “Providing unique and sought-after benefits that align with retirement or health-care savings programs can provide a great competitive advantage to recruit and retain talent,” she said. 

Saving for the future is about more than just retirement

In acquiring Gradvisor, a company that specializes in 529 plans, Betterment at Work customers will also be able to invest in 529 plans, and in the future offer them as part of a benefits package. 

“These two new offerings round out Betterment’s workplace solution to address different stages in employees’ lives,” Betterment at Work wrote in a press release. Much like the student loan management solution, the 529 plan is about customizing and streamlining an employee’s money management needs. The 529 platform offers individualized saving recommendations and allows for payroll deposits to be easily added to college savings plans.

Paying off student loans, saving for college, and investing for retirement are three huge chunks of a person’s financial picture that can have a big impact on a person’s career decisions. Betterment at Work’s programs allows for employees to get a bird’s eye view of their situation while empowering them to make smart financial decisions.