The average millennial graduating from college today will not retire until age 73 because heavy student-loan debt will prevent that such people from saving enough money for an earlier retirement, according to a new study.
The typical graduate has a “seemingly manageable” $23,300 in education debt and a median starting salary of $45,327, according to the analysis by financial website NerdWallet.com. In general, millennials are people in their 20s or early 30s.
Despite their decent salaries, the average millennial has to earmark roughly 7 percent of earnings toward student loans. By the time the college bills are paid, the average millennial will be 33 years old and have only $2,466 saved for retirement, the study says.
Including foregone savings, student debt will cost the average millennial $115,096 in “lost” retirement savings, the study concludes.
“While retirement is certainly not impossible, for most it will have to wait until their early to mid-70s — more than 10 years later than the current average retirement age of 61,” the study says.