New Graduates With Student Loan May Not Retire Until Age 75
Confirming what many of us suspected, but may not have wanted to know for sure, NerdWallet research shows that the median retirement age for new graduates has now been lowered to 75.
That’s two years later than you’d expect in class in 2013, and ten years later than the old “retire at 65” mindset. This is due to rising rents, high student debt and overly conservative investments.
The study is based on a hypothetical 23-year-old new graduate with a current average starting salary of $ 45,478, an average student loan debt of $ 35,051, and a conservative return on investment of 6% and a savings rate of 6% (current median for millennials).
Even if you don’t fit that exact shape, it’s clear that high student debt and high rental rates can get in the way of your dreams of early retirement. At least there is some good news in NerdWallet’s findings: if you live at home after graduation for two years – and invest your savings – you could retire five years earlier than anticipated at age 70. kids are reading this!)
Check out the NerdWallet report for darker details.
2015 NerdWallet New Graduate Retirement Report | NerdWallet