As a higher ed leader, you might have an idea what your employees earn in their paychecks. But do you know how they are faring financially beyond their salaries and benefits?
A new analysis warns that most higher ed employees are dealing with debt while struggling to meet short- and long-term financial goals, such as saving enough money for retirement.
Eight in 10 full-time college and university employees are in debt and more than 70% of say they cannot achieve other financial priorities, says a new report by TIAA Institute and CUPA-HR. About one-third of the employees who describe themselves as “significantly debt constrained” are having trouble meeting everyday living expenses.
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“Higher ed employees earn less today than before the COVID-19 pandemic after adjusting for inflation,” said Melissa Fuesting of CUPA-HR. “At the same time, many are debt constrained. Both are factors that would squeeze household finances in the near term, making it more challenging to make ends meet.”
The employees having the most difficulty making ends meet are non-faculty and non-administrative staff. Only 6% of faculty members and 8% of administrators said they struggled to make ends meet, compared to 17% of other professional staff.
However, more faculty members than professional staff or administrations reported that debt constraints were preventing them from meeting other financial priorities.
Not all higher ed employees who are carrying debt are considered “debt constrained.” But among those who are, many have outstanding student loans. Another 34% of debt-constrained workers do not have enough savings to cover three months of living expenses.
Here’s what else the survey found:
- 93% of full-time higher ed employees are saving for retirement.
- 65% are saving through an employment-based retirement savings plan.
- 40% of non-savers are significantly debt-constrained, while 20% of debt-constrained savers are not confident they’re saving an adequate amount.
