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- The Only 9 States Where Retirees Likely Won’t Run Out of Money (financebuzz.com)
A recent study from Seniorly.com sheds light on a question many retirees ask: Will my savings last through retirement? The answer, it turns out, depends significantly on where you choose to live.
Seniorly analyzed government data, including projections for retirement income, living expenses, and life expectancy, to assess whether a typical 65-year-old in each state is likely to retire with a financial surplus or face a shortfall.
How the Study Was Conducted
Researchers used data from the Centers for Disease Control and Prevention (CDC), the Social Security Administration (SSA), and the U.S. Census Bureau to estimate how long retirees can expect to live, their total retirement income, and their anticipated costs of living. By comparing these factors, the study identified states where retirement savings are more likely to stretch comfortably-and those where retirees may struggle financially.
States Where Savings Stretch the Furthest
The study found only nine states where retirees are projected to end their retirement years with a financial cushion. The Pacific Northwest, Mountain West, Midwest, and some East Coast areas dominate this list.
For example, seniors in Washington state can expect to finish retirement with approximately $146,000 left over. Although they may need nearly $985,000 to cover expenses during an estimated 20-year retirement, their income projections total about $1.13 million.
The nine states with the largest projected surpluses are:
- Washington: $146,000
- Utah: $121,000
- Montana: $43,000
- Colorado: $38,000
- Iowa: $32,000
- Minnesota: $23,000
- Maryland: $13,000
- Kansas: $8,000
- South Carolina: $2,000
States Where Retirees Face the Largest Shortfalls
On the other end of the spectrum, nine states stand out for having the greatest risk that retirees will outlive their savings. New York tops the list with an estimated shortfall of $448,000 over a 20-year retirement. Despite needing about $1.12 million for living expenses, retirees there are projected to bring in just $670,000 from Social Security, savings, and other sources.
The states with the biggest projected deficits include:
- New York: $448,000
- Hawaii: $417,000
- District of Columbia: $407,000
- Alaska: $342,000
- California: $337,000
- Massachusetts: $294,000
- Rhode Island: $284,000
- Vermont: $248,000
- Louisiana: $244,000
Why Do Savings Last Longer in Certain States?
The study highlights that a favorable mix of higher retirement income, lower living costs, and moderate life expectancy helps retirees maintain financial security. States like Washington benefit from this balance. Conversely, states with high costs of living, such as New York, challenge retirees even if incomes are relatively strong.
Planning for Your Retirement
To ensure your savings can sustain you, begin by calculating your expected income sources, including Social Security, pensions, and personal savings. Then, outline your anticipated retirement expenses, factoring in local living costs. It’s also wise to plan for a retirement that could last 20 to 30 years or more.
Final Thoughts
Where you choose to retire matters more than many realize. Even states with a positive outlook may offer only modest financial cushions.
For example, South Carolina ranks among the best, but with a narrow surplus of just $2,000. Reviewing your financial plan regularly and exploring ways to maximize benefits can help you stretch your savings and enjoy peace of mind in your golden years.
Tips to Strengthen Your Financial Future
- Increase your income: Consider side gigs or part-time work to supplement retirement income.
- Grow your savings: Harness the power of compound interest and seek professional advice to optimize your investments.
- Maximize benefits and cut costs: Take advantage of senior discounts, shop for better insurance rates, and avoid hidden expenses that erode your budget.
Being proactive and informed can make all the difference in securing a comfortable and financially stable retirement.
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- The Only 9 States Where Retirees Likely Won’t Run Out of Money (financebuzz.com)