Sixty-six percent of borrowers said they have had, or will have, to reduce their retirement contributions in order to restart their student loan payments, a survey from insurer Allianz Life found, but experts warned that cutting retirement contributions should be a last resort and suggested ways to save while paying down student debt.

It is all right not being able to contribute to retirement savings for a while to meet the minimum monthly payment on student loans, as making the loan payment the priority helps to avoid damage to one’s credit score, financial planners have said, according to CNBC. Still, contributing whatever one can to a retirement savings account is smart when one is relatively young, because “you can’t make up for lost compounding years,” said Melinda Satterlee, a certified financial planner and founder of Marathon Wealth Management LLC, in an interview with CNBC Make It.

Contributing pre-tax dollars via an employer-sponsored retirement account such as a 401(k) or 403(b) will lower employees' adjusted gross income, she said, which could in turn lower their monthly student loan payment. 

Income-driven repayment plans, such as Saving on a Valuable Education (SAVE), use adjusted gross income to calculate the monthly payment.

Financial experts advised borrowers whose employers offer a 401(k) match to take advantage of that benefit. Contributing less is like leaving “free money” on the table, they said, according to CNBC.

Starting in 2024, employers will be able to match a student debt payment with a contribution to a retirement account under the SECURE 2.0 Act, passed in 2022.

While the main priority of many employees may be achieving debt freedom, they should be aware of having to multitask to attain overall financial freedom.

“If paying off debt helps them sleep better at night, that can take precedence,” said Satterlee. “But I think a balanced approach to both debt and retirement savings is possible and is best.”