New college graduates are going to be working well past age 70, according to a new study from NerdWallet. The research notes that rising housing costs and student loan debt have pushed the retirement age to 75 for students entering the workforce this year. That's a two-year increase from NerdWallet's last analysis, which took a look at the class of 2013. According to the report, average student loan debt sits at $35,051, while Zillow data indicates that rent costs are up 11 percent nationally since 2012. With average life expectancy at 84, this data indicates that new graduates will only spend nine years in retirement. NerdWallet's calculations are based on a 23-year-old new college graduate, earning a median starting salary of $45,478 per year.
Do Baby Boomers know best? In a recent retirement survey, Boomers put a higher price tag on retirement than Gen-Xers and Millenials. On average, investors think they need to have about $800,000 saved for retirement, according to Natixis Global Asset Management’s 2015 Retirement Survey of over 1,000 Americans. But Baby Boomers put the number at $946,795, compared to the $750,000 that the younger generations calculated. Interestingly, over half—54 percent—of those surveyed do not believe their savings will last longer than they will.
Why the Poor and Middle Class Don't Like to Talk About Money
Nearly two-thirds of Americans surveyed in a recent TIAA-CREF Advice Matters Survey believe they don't have enough money to merit working with a financial advisor. Nearly half think they need at least $50,000 in savings before hiring an advisor makes sense. Of those surveyed that did have an advisor, more than a third changed the asset allocations in their retirement plans and increased their savings because of it. Another third said they monitor their savings more closely, while almost 30 percent decreased spending and established a plan to pay off debt. "Everyone can benefit from financial advice because we all have something we're working toward - paying off student loans, purchasing a new home, or making sure our loved ones are taken care of when we're gone," TIAA-CREF President of Individual Advisor Services Kathie Andrade said. "No matter where you are in your savings journey, you don't have to go it alone. The sooner you engage an advisor, the more likely you are to meet your goals."
Fiserv Expands Reporting With InvestEdge
Fintech-firm Fiserv announced Wednesday that it would add data management and customized reporting features from InvestEdge to its Unified Wealth Platform. According to a release, the integration allows for a real-time display of client account data and reports can be accessed through an investor portal. InvestEdge is the most recent of more than 40 reporting options available on Fiserv's platform for the wealth management industry, recently adding client messaging and digital statement delivery. “Wealth advisors have been entrusted with their client’s wealth, and reporting highlights the value that advisors create, enabling them to maintain long term relationships with their clients,” said Bob Stewart, Chief Executive Officer and founder of InvestEdge.