Current Grads Will Retire 12 Years Late
Thanks to student debt, study predicts new median retirement age of 73
By Kevin Spak, Newser User
Posted Oct 24, 2013 11:33 AM CDT
   (Shutterstock)

(Newser) – Your student loans won't just cost you money, they'll cost you years of labor. A new analysis from Nerd Wallet estimates that today's graduates won't be able to retire until they're 73, a full 12 years later than the current average retirement age of 61, thanks mostly to their debt loads. The median student graduates with $23,300 in debt, and will devote about 7% of their income to repaying it for the first 10 years of their career. "This prevents any meaningful contributions toward retirement," the site reasons.

That means that, when you factor in the opportunity cost of not having that savings growing and making money, that $23,300 will wind up costing $115,096 in the long run. Of course, even these bleak numbers probably sound good to some Americans; a new Wells Fargo survey of middle-class workers aged 25 to 75 found that 34% planned to work until at least their 80th birthday, and 37% don't expect to retire at all, CNN Money reports.

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Showing 3 of 33 comments
Greatminds2012
Oct 26, 2013 1:14 PM CDT
Yippee. I want these folks to pay me my social security.
ppaca
Oct 25, 2013 10:08 PM CDT
Most current grads retire about age 22. 0bama has ensured there are no jobs to retire from. Good news though, Social Security will last forever. No benefits paid to the deadbeats means more money for the rest of us.
normal
Oct 25, 2013 10:24 AM CDT
73 is crazy. Hoping to retire by 45 here, then I'll just live off the government's many welfare programs. JK