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At the recent Spring Policy Forum hosted by the Employee Benefit Research Institute (EBRI), a panel of financial experts provided insight into how debt has changed across generations and how financial wellness programs can help address the issue.

According to the panel, debt is a particularly challenging factor when it comes to balancing financial wellness and retirement savings. The panel reviewed the levels and types of debt of American workers and retirees, including how debt has changed from prior generations. The information revealed that nearly half of all workers have indicated that their current level of debt is an obstacle to saving for retirement.

Below are several highlights from their discussion:

58% of Americans feel stressed in preparing for retirement.
46% of Americans indicate that their debt is negatively impacting their ability to save for retirement.
The number one reason people cite for why they have taken money out of their retirement plan, whether it be a loan or withdrawal, is to pay off a credit card bill or other debt.
96% of employees with student loan debt would save more for retirement if student loan debt did not exist.

How can a ﬁnancial plan help with your debt management?

A financial plan is a comprehensive evaluation of your current financial state, long-term goals, and strategies that can help achieve those goals. The plan is highly individualized and involves numerous variables that assess your personal situation, tolerance for risk, and future expectations.

A simple financial plan can help with your debt management in the following ways:

Determine your cash flow, identify assets, and create a budget. Budget planning can reveal additional amounts of disposal income for future needs.
Identify your liabilities and manage debt to pay off high credit cards or other debts. How to manage this debt and pay it off is critical to overcoming financial burdens and achieving financial wellness.

A more sophisticated plan would likely involve a CERTIFIED FINANCIAL PLANNER™ professional. For more information about creating a financial plan, contact Midland Wealth Management at 888-637-2120.