Money-related stress can be overwhelming, but financial wellness is an often-overlooked aspect of employee well-being. Only 28% of organizations offering financial wellness programs—even when their employees say they’re eager for help managing debt.
The Growing Burden of Student Loan Debt
Student loan debt, in particular, is a major contributor to financial-related stress. As of March 2025, 42.8 million borrowers in the United States, including more than 2.2 million people over the age of 55, reported an average balance of $38,375. That debt can have serious implications for mental health:
In this scenario, many employees face a difficult tradeoff: invest in a 401(k) to get their employer match or pay down student loans. Ultimately, outstanding debt balances prevent many employees from saving for retirement. Specifically, 42% of adults with student loans are not saving for retirement. Meanwhile, 61% are worried they will not have enough money to support themselves after retiring. It’s no surprise, then, job seekers are looking for support. Nine in 10 college students with student loans are looking for a company offering student loan perks, and six in 10 working adults would consider switching companies to gain a student debt benefit.
Paying Off Debt and Saving for the Future
While 14% of companies offer some type of student loan debt payment benefit, most provide lump-sum payments for employees. Unlike these other organizations, Abbott created a program that helps employees pay off debt and save for retirement simultaneously.
Specifically, the Freedom 2 Save program enables employees to direct their 2% minimum 401(k) contribution to their student loan payments while still getting a 5% match contribution toward the their 401(k). Unlike standard 401(k) payments, contributions to student loan payments are made with taxed earnings. All employees who are eligible for Abbott’s Stock Retirement Plan can sign up for the program on day one.
In the first year of the program, more than 1,000 employees signed up. Abbott estimates an average of three years were shaved off of their loan periods, saving them thousands of dollars in interest. Now, more than 3,400 employees have participated. In total, Abbott has contributed over $7.7 million to participants’ 401(k)s.
Abbott, meanwhile, has seen an impact on their hiring and retention. For example, employees who participate in Freedom 2 Save are 19% more likely to stay with the company.
Interested in Starting Your Own Benefit?
While Abbott had to work with the federal government and receive permission from the IRS to implement their Freedom 2 Save program, the 2024 SECURE 2.0 Act now allows employers to match retirement contributions based on student loan payments. Since then, a number of companies, including Chipotle and Verizon, have launched similar programs.
To support other organizations, Abbott created the Freedom 2 Save Blueprint. It offers guidance around launching similar programs, including preparation steps, questions to consider, and research-backed practices.
