You'll Be Working Till You're 75 to Pay Off Those Student Loans, Study Says


Ah, the excitement of adulthood: Most 2015 college graduates will have embarked on their first real job by now, bright-eyed and bushy-tailed. But, according to a study by NerdWallet, they'd better enjoy their career path, because they'll be working long after the novelty wears off — until they're 75 years old.

"NerdWallet's analysis finds the Class of 2015 faces a retirement age pushed back to 75 — two years later than what the Class of 2013 could expect," the report said. Why? "Increasing student loan debt, rising rents and millennials' approach to money management." 

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To make matters worse, it looks as though the Class of 2015 will also have less money than previous generations in their retirement funds because they're having trouble saving money.

Largely, that's not young people's fault. Since 2012, life for many has already become considerably more expensive. In the United States, student loans have increased by 19%, while rent has increased by 11%. 

"The average student loan debt is now $35,051, up more than $5,500 from 2012, when it was $29,400," the study explains.

The report makes the case for how much prolonged repayment of student loans deprives individuals of future capital. Most people repaying loans are doing so at the expense of saving; that saved money could be earning compound interest over the years. Essentially, the later one starts saving, the less money they'll have for retirement. 


The debt former students are forced to pay off would deprive the average 2015 graduate of roughly $684,474 in the piggy bank.

Conversely, saving sooner rather than later, if it's possible, will enable those fettered by debt to retire earlier. People able to save 10% of their salary every year, starting at age 23, will be able to retire at 70, according to NerdWallet. If that same individual were to save 15%, their retirement age would lower to 65, and a savings of 20% would allow one to move down to Florida and start playing bingo at 62.