As millions of Baby Boomers now know, the time to start planning your retirement isn’t middle age. A good percentage of Millennials have not even begun saving for retirement and if you couple that with the reality that these individuals will face some unprecedented financial challenges, it begs the question – Will many Millennials ever be able to retire?
1) Student Loan Debt Can Be Huge
The financial website, The College Investor, reports that the average college graduate of the class of 2016 has student loan debt in excess of $37,000, nearly double the average student debt of a graduate in 2003. The scary thing is that these numbers are expected to rise. Student loans represent the biggest consumer financial challenge of this decade. If you have student loan debt, minimize the negative impact by studying the small print, the terms of your loan, and investigating all options regarding help with repayment. You can now legally refinance both private and federal loans, for example, and that may be a solution for borrowers who are stuck in loans that carry extremely high interest rates. There are also programs to help you manage your federal loan debt while establishing your career. The bottom line is if you can better manage this kind of loan, it will do wonders for helping you prepare for a more successful retirement in the future.