How much money do you really need to retire with peace of mind?
Americans believe the “magic number” for a comfortable retirement is $1.26 million, down $200,000 year over year, according to recent research from Northwestern Mutual.
Still, despite the slight decrease, the anticipated figure for retirement security remains out of reach for many people in the U.S.
One in five Americans over the age of 50 has no retirement savings, and more than half worry they won’t have enough money to last in retirement, per an AARP survey.
New research from Seniorly, a platform that helps family and older adults find senior living options, unpacks where seniors are most and least likely to outlive their retirement savings.
Seniorly used the latest available data on life expectancy at age 65, Social Security income, household net worth and cost-of-living metrics in its analysis.
The research found that across the U.S., the average projected retirement income from benefits, savings and investments is $762,000, while projected living expenses over 18.2 years are $877,000, which translates to a $115,000 shortfall.
However, the average savings gap retirees face varies significantly depending on their state.
New York emerged as the state where retirees are most likely to outlive their retirement savings: Due to high expenses that even substantial incomes don’t always offset, the average senior in New York will need about $448,000 more than they have, per the study.
Seniors in Hawaii, Washington, D.C., Alaska and California are the next most likely to see retirement income gaps, with average shortages ranging from $417,000 to $337,000, according to the research.
Retirees who want a better chance at financial comfort during their golden years might consider states where, on average, people have enough income and assets to cover their expected expenses.
Thanks to relatively high projected incomes and moderate expenses, seniors in Washington, Montana and Utah are the least likely to outlive their retirement savings, with average surpluses of $146,000, $121,000 and $43,000, respectively, per the data.
Check out Seniorly’s full ranking of the states where seniors are most and least likely to outlive their retirement savings here.
How much money do you really need to retire with peace of mind?
Americans believe the “magic number” for a comfortable retirement is $1.26 million, down $200,000 year over year, according to recent research from Northwestern Mutual.
Still, despite the slight decrease, the anticipated figure for retirement security remains out of reach for many people in the U.S.
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