As if student-loan debt wasn't enough of a burden for new college graduates. A new report predicts that young workers will need to work until they're 75 on average to save enough for retirement.
Researchers at Nerdwallet, the financial site that published the report Wednesday, blamed rising rents and student debt levels. "Millennials are facing a unique challenge in ever-rising student debt that is really impacting their ability to save early in their careers," said NerdWallet investing manager Kyle Ramsay.
Meanwhile, the cost of renting a home in the U.S. has risen to its least affordable levels ever, taking up a record proportion of income in most major cities, according to a study from property website Zillow. Renters in the U.S. can now expect to pay around 30.2 percent of their monthly income for rent on average, even more in some high-cost areas like Los Angeles, New York and Miami.
The NerdWallet calculations were made based on a 23-year-old saving 6 percent of his or her salary (the median savings rate for that age group) who graduated owing $35,051, the average student loan debt carried by 2015 graduates.
But there are ways to tilt the balance in the other direction.