As we inch ever closer to another Halloween evening there is a spooky statistic that I recently read about. Business Insider recently published an article that today’s college graduate can expect to retire at age 75. Yes, age 75, which was coincidentally the average life span of an American just 24 years ago.
Why age 75?
High student debt, rising rents, and social security viability are just a few of the reasons.
The average student loan debt sits just above $35,000. As someone who graduated a mere 3.5 years ago who had just over $30,000, I can attest that a large portion of one’s income goes to paying down that debt. And when you use the majority of your income to pay down debt what does that do? Prevents one from saving for retirement. Prevents one from saving to buy a house, thus subjecting oneself to the ever-increasing rents throughout the country.
By the time today’s graduating seniors look to retire, life expectancy could very easily be well into the 90’s. Fifteen or so years of retirement might seem like a plausible plan for many. There are ways to ensure that you don’t have to wait until 75 for retirement though. It starts with budgeting, followed by saving and paying down debt. Finally, it is followed up with living within your means and not succumbing to societal pressures to purchase all of the nice things.
Don’t be a part of the spooky statistic.
Budget Smart, Invest Wise