Updated Oct 24, 2013 - 4:52 pm
Report: New college grads will retire after 70
Recent college graduates who are planning for a comfortable retirement may want to take a closer look at their bank accounts.
According to dailyfinance.com, recent college graduates are facing high levels of debt and unemployment that is likely to push the average retirement age to 73, an increase of 12 years over the current average.
The average debt load of a recent college graduate is $23,300 and the students are on a 10-year payment plan. The unemployment rate for recent graduates is 18 percent.
"[A]lthough the median college graduate leaves with a seemingly manageable $23,300 debt load, 7% of a student's earnings go toward yearly loan payments of $2,858 for the first ten years of his or her career," writes NerdWallet analyst Joseph Egoian. "This prevents any meaningful contributions toward retirement."
If students were able to put their student loan payments into a retirement plan, it would easily result in an additional $143,000 for retirement.
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