Saving for retirement should be a lifelong commitment, but there are times in life when things like recessions, inflation, health issues, and salary constraints can prevent you from saving early and consistently. A recent AARP survey found that 18% of respondents age 50 and older have no retirement savings. More than 50% of retirees who currently have no savings cite everyday expenses as a financial barrier to adequate savings, followed by housing costs (40%), debt repayments (37%), and medical costs (19%). are.
If you’re wondering if you have enough savings to retire in your state, or if you’re close to the bare minimum, a recent study from GOBankingRates reveals the annual cost of living, annual spending after Social Security, and The most important savings amounts are investigated. Retirement required in all 50 states.
30 states that require minimum savings before retirement
If you have little savings or simply want to lower your retirement costs, West Virginia may be the state for you. The state capital, Charleston, ranks 10th on Kiplinger’s list of the 25 Best Places to Live: American Cities. Property taxes are among the lowest in the country, and there is no death tax.
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In fact, the 10 states with the lowest savings needs feature prominently on the list of best places to live. Cities like Knoxville, Tennessee and Birmingham, Alabama are two of the best cities for retirees to rent. It has high-quality hospitals and doctors, plenty of green space, and retirement-friendly amenities.
You may notice that Nebraska and South Dakota, as well as Tennessee and Indiana, have similar spending and savings needs. That doesn’t mean the underlying costs are equivalent. For example, annual housing costs in Nebraska are $9,435, $865 less than South Dakota, which averages $10,300 per year. However, utilities are $207 cheaper in South Dakota, with annual costs of $3,626, compared to $3,833 in Nebraska. While South Dakota ranks among the top 10 tax-friendly states for retirees, Nebraska is one of the most expensive states for deaths.
Swipe horizontally to scroll horizontally Minimum savings required for retirement in the 30 cheapest states Required savings for retirement in the 30 cheapest states: Annual cost of living (total expenses): Annual Social Security income: Annual expenses after Social Security: 1 West Virginia $650,356 $48,451.48 $22,437.24 $26,014.24 2 Oklahoma $687,938 $49,954.75 $22,437.24 $27,517.51 3 Kansas $700,947 $50,475.11 $22,437.24 037.87 4 Alabama $712,510 $50,937.66 $22,437.24 $28,500.4 2 5 Mississippi $715,401 $51,053.29 $22,437.24 $28,616.05 6 Missouri $718,292 $51,168.93 $22,437.2 4 $28,731.69 7 Arkansas $718,292 $51,168.93 $22,437.24 $2 8,731.69 8 Iowa $741,419 $52,094.02 $22,437.24 $29,656.78 9 Tennessee $744,310 $52,209.65 $22,437.24 $29,772.41 10 Indiana $744,310 $52,209.65 $22,437.24 2.41 11 Georgia $758,765 $52,787.83 $22,437.24 $30,350.59 12 Michigan $765,992 $53,076.92 $22,437.24 $30,639.68 13 Louisiana $770,328 $5 3,250.38 $22,437.24 $30,813.14 14 Texas $774,665 $53,423.83 $22,437.24 $30,986.59 15 Kentucky $777,556 $53,539.47 $22,437.24 $31,102.23 16 North Dakota $ 780,447 $53,655.10 $22,437.24 $31,217.86 17 Illinois $787,674 $53,944.19 $22,437.24 $31,506.95 18 Nebraska $789,119 $54,002.01 $22,437.24 64.77 19 South Dakota $789,119 $54,002.01 $22,437.24 $31,564.77 20 New Mexico $792,010 $54,117.65 $22,437.24 $31,680.41 21 Ohio $797,792 $54,348.92 $2 2,437. 24 $31,911.68 22 Montana $806,465 $54,695.83 $22,437.24 $32,258.59 23 Minnesota $809,356 $54,811.46 $22,437.24 $32,374.22 24 Wyoming $813,692 $54, 984.92 $22,437.24 $32,547.68 25 Pennsylvania $820,919 $55,274.01 $22,437.24 $32,836.77 $ 22,437.24 $33,646.22 27 South Carolina $849,828 $56,430.37 $22,437.24 $33,993.13 28 North Carolina $862,837 $56,950.73 $22,437.24 $34,513.49 29 Delaware $897,528 38.3 6 $22,437.24 $35,901.12 30 Idaho $900,419 $58,454.00 $22,437.24 $36,016.76
20 states with the highest minimum savings requirements for retirement
The states with the highest minimum retirement savings are well known for their unusually high costs of living. These states feature in our rankings, including the 10 most expensive cities to live in and the 15 most expensive housing markets in the country.
It’s no surprise that the Polynesian paradise of Hawaii has the highest annual cost of living for retirees, but it also has the lowest effective property tax rate in the country at 0.31%.
California (2), Connecticut (13), Massachusetts (3), New Jersey (10), New York (5), Rhode Island (12), Utah (17), and Vermont (8) are the worst states for retirees . About taxes when considering retirement income and fixed asset tax rates. For example, California is the only state that fully taxes military retirement benefits.
The contrast between West Virginia, which has the lowest minimum savings requirements, and Hawaii, which has the highest minimum savings requirements, is striking. Retirees in Hawaii will need nearly $1.5 million more than in West Virginia. Housing costs in Coal State are 42.6% below average, while housing costs in the Aloha State are 213.2% above average. Health care is one area where both states pay more than the norm. But the difference lies in the stark contrast, with West Virginians paying 1.3% and Hawaiians 22% more than the norm.
Swipe to scroll horizontally Minimum retirement savings requirements in the 20 most expensive states Retirement savings requirements in the 20 most expensive states: Annual cost of living (total expenses): Annual Social Security income: Social Security Annual expenditures after: 1 Hawaii $2,130,497 $107,657.12 $22,437.24 $85,219.88 2 California $1,534,972 $83,836.10 $22,437.24 $61,398.86 3 Massachusetts $1,524,853 $83,431.37 7.24 $60,994.13 4 Alaska $1,247,327 $72,330.32 $22,437.24 $ 49,893.08 5 New York $1,218,418 $71,173.96 $22,437.24 $48,736.72 6 Maryland $1,118,682 .52 $22,437.24 $44,747.287 Washington $1,102,782 $66,548.52 $22,4 37.24 $44,111.28 8 Vermont $1,097,000 $66,317.25 $22,437.24 $43,880.01 9 Oregon $1,088,327 $65,970.34 $22,437.24$43,533.10 10 New Jersey $1,082,546 $65,739.07 $22,437.24$43,301.83 11 New Hampshire $1,081,100 $65,681.25 $22,437.24$43,244.01 12 Rhode Island $1,078,209 $65,565.61 $22,437. 24$43,128.37 13 Connecticut $1,075,318 $65,449.98 $22,437.24$43,012.74 14 Main $1,047,855 $64,351.43 $22,437.24$41,914.19 15 Arizona $1,036,291 $63,8 88.89 $22,437.24$41,451.65 16 Florida $929,328 $59,610.36 $22,437.24$37,173.12 17 Utah $926,437 $59,494.72 $22,437.24$37,057.48 18 Nevada $923,54 6 $59,379.09 $22,437.24$36,941.85 19 Colorado $910,537 $58,858.72 $22,437.24$36,421.48 20 Virginia $903,310 $58,569.63 $22,437.24$36,132.3 9
Americans aren’t saving enough
Saving enough can be difficult, and many people fall behind. According to the 2022 Federal Reserve Survey of Consumer Finances, the median retirement savings for people ages 54 to 64 is $185,000, with an average balance of $538,00); The median savings is $200,000 and the average is $609,000.
Swipe to scroll Median savings by age group Average savings Under 35 $18,880 $49,130 35-44 $45,000 $141,520 45-54 $115,000 $313,220 55-64 $185,000 $537,560 65-74 $200,000 0
According to the Natixis 2022 Financial Professionals Report, the most common retirement planning mistakes include underestimating the impact of inflation (49%), life expectancy (47%), and overestimating investment returns (42%). Masu.
When you look at all the numbers, the average retiree relies on Social Security to make ends meet. This is a risky strategy because the Social Security Trust Fund will become insolvent in 2033. At that point, the fund’s ongoing income is expected to cover only 79% of the scheduled benefits, resulting in a 21% reduction in benefits.
Methodology: To find out exactly how much you need to retire in your state, GOBankingRates multiplies the annual spending for retirees in each state by the 65+ spending from the U.S. Bureau of Labor Statistics’ 2022 Consumer Expenditure Survey. Calculated expense costs. Based on each state’s cost of living index from the Missouri Economic Research and Information Center’s 2024 First Quarter Cost of Living Series. To find out how much retirees need to save, GOBankingRates calculates each state’s annual spending based on the Social Security Administration’s monthly statistical snapshot for June 2024, assuming a 4% withdrawal from savings. Subtract your annual Social Security income and divide by 0.04. Every year, to cover living expenses. All data is collected and current as of July 17, 2024.
