Share this @internewscast.com
According to a June study from the nonprofit Transamerica Center for Retirement Studies, outliving savings and investments is among the most significant retirement fears confronting Americans.
This concern is underscored by a recent report from the senior living platform Seniorly, which found that retirees in nearly every state are expected to lack sufficient income to cover their retirement costs.
The research indicates that seniors in 41 U.S. states and Washington, D.C., have not saved enough for retirement. With an average life expectancy of 18.2 years starting at retirement age (65 years old), retirees are projected to generate $762,000 from Social Security, savings, and investments throughout their retirement. Yet, their average expenses total $877,000, resulting in a deficit of $115,000.
Seniorly compiled data from entities like the U.S. Social Security Administration and the Census Bureau to assess expected retirement income and expenses.
The study identified New York as the highest-risk state for retirees depleting their funds, with expenses totaling $1.1 million and income at $670,000, creating a $430,000 gap. Conversely, Washington state stood out as the least risky, with a surplus of about $146,000 for retirees.
Complementing these findings, a report from Northwestern Mutual revealed that Americans believe they need $1.26 million to retire comfortably. However, 51% of Americans feel it is somewhat or very likely that they will not have enough money to cover their retirement expenses.
Here are the 10 states where seniors are most at risk of outliving their retirement savings, according to Seniorly, based on average income across a retirement lifetime and average expenses across a retirement lifetime for each state.
1. New York
Expenses Across Retirement Lifetime: $1.1 million
Income Across Retirement Lifetime: $670,000
Shortfall: $430,000
2. Hawaii
Expenses Across Retirement Lifetime: $1.7 million
Income Across Retirement Lifetime: $1.3 million
Shortfall: $400,000
3. District of Columbia
Expenses Across Retirement Lifetime: $1.1 million
Income Across Retirement Lifetime: $736,000
Shortfall: $364,000
4. Alaska
Expenses Across Retirement Lifetime: $1.1 million
Income Across Retirement Lifetime: $712,000
Shortfall: $388,000
5. California
Expenses Across Retirement Lifetime: $1.3 million
Income Across Retirement Lifetime: $926,000
Shortfall: $374,000
6. Massachusetts
Expenses Across Retirement Lifetime: $1.3 million
Income Across Retirement Lifetime: $1 million
Shortfall: $300,000
7. Rhode Island
Expenses Across Retirement Lifetime: $960,000
Income Across Retirement Lifetime: $676,000
Shortfall: $284,000
8. Vermont
Expenses Across Retirement Lifetime: $1 million
Income Across Retirement Lifetime: $771,000
Shortfall: $229,000
9. Louisiana
Expenses Across Retirement Lifetime: $724,000
Income Across Retirement Lifetime: $479,000
Shortfall: $245,000
10. Connecticut
Expenses Across Retirement Lifetime: $1 million
Income Across Retirement Lifetime: $851,000
Approximate shortfall: $149,000
One of the greatest retirement fears Americans face is outliving their savings and investments, according to a June study from the nonprofit Transamerica Center for Retirement Studies.
A new report published earlier this month by the senior living platform Seniorly highlights these concerns by finding that retirees in nearly every state are expected to fall short of enough income to cover their retirement costs.
The study found that in 41 U.S. states and in Washington, D.C., seniors do not have enough financial resources saved up for retirement. Retirees have an average life expectancy of 18.2 years at retirement age (65 years old) and are expected to bring in $762,000 across their retirement lifetime from Social Security, savings, and investments. However, their average living expenses are $877,000, leaving a gap of $115,000.
The rest of this article is locked.
Join Entrepreneur+ today for access.
