LOS ANGELES, March 14, 2024 (GLOBE NEWSWIRE) — FinTech Breakthroughan independent market intelligence organization that recognizes the best companies, technologies and products in the global FinTech market, announced today Fidelity Investments’® Removing Student Debt solution was selected as the winner of the “Student Loan Innovation Award” on 8th annual FinTech Breakthrough Awards program.
The Fidelity Student Debt Retirement Solution is an innovative benefit that helps employees increase their retirement savings while tackling student debt. This benefit, made possible through the adoption of SECURE 2.0, allows employers to use money already allocated to retirement plans to help employees save for retirement while paying down student debt. Employers continue to receive tax benefits while helping their employees pay off student debt and save for the future. The benefit is put into practice when the employee makes a payment on student debt. Their employer will then make a percentage of this payment as a contribution to the pension plan, allowing the employee to continue saving for retirement when they may not have been able to contribute otherwise.
Fidelity works with each company and its ERISA attorney to determine eligibility for benefits based on the unique characteristics of their retirement plan. Fidelity manages end-to-end implementation and administration, including participant registration, loan payment validation, recordkeeping and data transfers. At the end of the plan year, Fidelity works with clients to determine each participant’s retirement contribution based on their student loan payments.
Additionally, with the Student Debt Retirement solution, employees can view their benefits at any time through NetBenefits.® while HR teams see everything in their Loyalty Plan Sponsor Web Station® dashboard. Fidelity’s platform is user-friendly, with clear terminology and integrates seamlessly with existing retirement plans, allowing for greater security and minimal administration for the plan sponsor. The comprehensive solution offers free tools, information, 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 to market a revolutionary student debt solution. Student debt is a barrier at many stages of life, particularly saving for retirement, and approximately 25% of the working population is in student debt, with the average debt level exceeding $37,000 » , said Steve Johansson, Managing Director of FinTech Breakthrough. “We are delighted to recognize Fidelity’s solution with the Student Loan Innovation Award. Faced with the burden of debt, the Student Debt Retirement program allows companies to help employees alleviate this burden with options that also make retirement viable for their future.
The FinTech Breakthrough Awards is the premier awards program created to recognize FinTech innovators, leaders and visionaries from around the world across a range of categories including digital banking, personal finance, lending, payments, investments, RegTech, InsurTech and many others.
“Student debt is a barrier that prevents many Americans from participating in important life milestones, especially saving for retirement,” says Jesse Moore, senior vice president and head of student debt at Fidelity Investments. “The introduction of a retirement-focused student debt benefit is a revolutionary step forward for the benefits industry that will help millions of people on the path to financial well-being and mobility. We have worked with hundreds of employers to administer student loan benefits, and in the coming year we expect to reach more than 1.2 million Americans to implement these benefits.
About FinTech Breakthrough
Part of Technological breakthrougha leading market intelligence and recognition platform for technological innovation and leadership worldwide, the FinTech Breakthrough Awards program is dedicated to honoring excellence in financial technology and services companies and products. The FinTech Breakthrough Awards publicly recognize the achievements of FinTech companies and products in categories including Payments, Personal Finance, Wealth Management, Fraud Protection, Banking, Lending, RegTech, InsurTech and much 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 that have received awards. Tech Breakthrough LLC’s acknowledgments consist 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 our customers’ financial well-being and deliver better outcomes for the customers and businesses we serve. Fidelity’s strength comes from the breadth of our market-leading, diversified financial services business, serving 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 strive to meet the unique needs of a large and growing customer base. Privately held for 77 years, Fidelity employs more than 74,000 associates in the United States, Ireland and India. For more information about Fidelity Investments, visit .
The opinions expressed are as of the date indicated, based on information available at the time, and may change depending 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 assumes no obligation to update the information.
