Help your clients modernize plan benefits with groundbreaking Retirement Loan ProtectionSM
Closing the retirement security gap
You want to help your Plan Sponsor clients protect plan assets and loan defaults are a significant source of asset leakage. Our innovative and easy to implement Retirement Loan ProtectionSM solution safeguards your clients and their employees by preventing loan defaults and cash outs—measurably improving financial wellness.
$300,000
The amount of retirement savings a typical borrower will lose when defaulting
Source: “Loan leakage: How can we keep loan defaults from draining $2 trillion from America’s 401(k) accounts?,” Deloitte, October, 2018.
Assumes a 42-year old borrower defaults on a 401(k) loan. Taxes and penalties will apply.
Revolutionize financial wellness with Retirement Loan ProtectionSM
- Drive satisfaction and retention with a meaningful and measurable financial wellness solution that is easy to implement.
- Mitigate fiduciary risk and preserve plan assets under advisement by preventing loan defaults.
- Provide an immediate and measurable Diversity, Equity and Inclusion initiative that mitigates default disparity for underrepresented participants.
- Help clients alleviate employee stress by providing a safety net that protects their savings and progress.
Ready to help your client protect their employees and close the retirement gap?
Education
The Impact of Adding an Automatically Enrolled Loan Protection Program to 401(k) Plans: This EBRI Issue Brief outlines the impact of adding an automatically enrolled loan protection program to 401(k) plans. (February 2022)
What 401(k) borrowers can add to the loan conversation. This study by Greenwald & Associates uncovers employees concerns about repayment of their retirement loan and interest in a better safety net. (2019)
Loan Leakage: 401(k) defaults drain over $2 trillion. This Deloitte study unveils the lost retirement security over the next 10 years resulting from loan default. (2018)
Participant Loan Leakage: Protecting Participants Accounts and Reducing Fiduciary Risks. This report by ERISA law firm Drinker Biddle & Reath discusses the potential financial and fiduciary issues caused by retirement plan loan defaults. (2019)
Tools and Resources
Loan Portfolio Due Diligence Worksheet: Use this tool to help your clients evaluate the health of their loan portfolio.
Introductory flyer. To share with clients or participants
Prevent retirement loan defaults and improve outcomes. Brief introduction to retirement loan protection solution
Hiding in Plain Sight. The $2.5 Trillion Loan Default Problem. This short video summarized the loan default problem and how Custodia Financial works to alleviate it.
