LOS ANGELES, March 14, 2024 (GLOBE NEWSWIRE) -- FinTech Breakthrough, an independent market intelligence organization that recognizes the top companies, technologies and products in the global FinTech market, today announced Fidelity Investments’® Student Debt Retirement solution has been selected as the winner of the “Student Loan Innovation Award” in the 8th annual FinTech Breakthrough Awards program.
Fidelity’s Student Debt Retirement solution is an innovative benefit that helps employees boost retirement savings while tackling student debt. The benefit, made possible through the passage of SECURE 2.0, allows employers to use money already allocated for retirement plans to help employees save for retirement while paying down student debt. Employers continue to benefit from tax advantages while providing their employees relief in paying down student debt and saving for the future. The benefit is put into practice when the employee makes a student debt payment. Their employer will then match a percentage of that payment in the form of a retirement plan contribution – allowing the employee to continue saving for retirement when they otherwise may not have been able to contribute.
Fidelity works with each company and their ERISA counsel to determine benefit eligibility based on the unique characteristics of their retirement design plan. Fidelity manages end-to-end implementation and administration including participant enrollment, loan payment validation, recordkeeping and data transfers. At the end of the plan year, Fidelity works with clients to determine each participants’ retirement contribution based on their student loan payments.
Additionally, with the Student Debt Retirement solution employees can view their benefit at any time through NetBenefits® while HR teams see everything in their Fidelity Plan Sponsor WebStation® dashboard. Fidelity’s platform is user friendly with clear terminology and seamlessly integrates with existing retirement plans, allowing greater security and minimal administration for the plan sponsor. The comprehensive solution offers free tools, insights, customer support, and more, to help people make informed decisions beyond their student loans.
“Fidelity Investments is leveraging its strength, stability and years of experience to bring a breakthrough student debt solution to market. Student debt is a barrier to so many life milestones, particularly saving for retirement, and approximately 25% of the workforce holds student debt with an average debt level topping $37k,” said Steve Johansson, Managing Director, FinTech Breakthrough. “We’re thrilled to recognize Fidelity’s solution with the ‘Student Loan Innovation Award.’ Faced with the burden of debt, the Student Debt Retirement program lets companies help employees alleviate this burden with options that also makes retirement viable for their future.”
The FinTech Breakthrough Awards is the premier awards program founded to recognize the FinTech innovators, leaders and visionaries from around the world in a range of categories, including Digital Banking, Personal Finance, Lending, Payments, Investments, RegTech, InsurTech and many more.
“Student debt is a barrier that prevents so many Americans from participating in important life milestones – particularly saving for retirement,” says Jesse Moore, senior vice president, head of Student Debt at Fidelity Investments. “The introduction of a retirement-focused student debt benefit is a game-changing step forward for the benefits industry that will help millions on their path toward financial wellness and mobility. We have worked with hundreds of employers to administer student loan benefits and in the year ahead, we plan to reach more than 1.2 million Americans to implement these benefits.”
About FinTech Breakthrough
Part of Tech Breakthrough, a leading market intelligence and recognition platform for technology innovation and leadership around the globe, the FinTech Breakthrough Awards program is devoted to honoring excellence in Financial Technologies and Services companies and products. The FinTech Breakthrough Awards provide public recognition for the achievements of FinTech companies and products in categories including Payments, Personal Finance, Wealth Management, Fraud Protection, Banking, Lending, RegTech, InsurTech and more. For more information visit FinTechBreakthrough.com.
Tech Breakthrough LLC does not endorse any vendor, product or service depicted in our recognition programs, and does not advise technology users to select only those vendors with award designations. Tech Breakthrough LLC recognition consists of the opinions of the Tech Breakthrough LLC organization and should not be construed as statements of fact. Tech Breakthrough LLC disclaims all warranties, expressed or implied, with respect to this recognition program, including any warranties of merchantability or fitness for a particular purpose.
About Fidelity Investments
Fidelity’s mission is to strengthen the financial well-being of our customers and deliver better outcomes for the clients and businesses we serve. Fidelity’s strength comes from the scale of our diversified, market-leading financial services businesses that serve individuals, families, employers, wealth management firms, and institutions. With assets under administration of $12.6 trillion, including discretionary assets of $4.9 trillion as of December 31, 2023, we focus on meeting the unique needs of a broad and growing customer base. Privately held for 77 years, Fidelity employs more than 74,000 associates across the United States, Ireland, and India. For more information about Fidelity Investments, visit .
Views expressed are as of the date indicated, based on the information available at that time, and may change based on market or other conditions. Unless otherwise noted, the opinions provided are those of the speaker or author and not necessarily those of Fidelity Investments or its affiliates. Fidelity does not assume any duty to update any of the information.
