What Is The Average Retirement Age In America? The typical retirement-age homeowner without a mortgage in the state spends $422 a month on housing, below the comparable $499 monthly median nationwide. Business Wire. cost of living: 12.8% less than avg. total retirement spending: $937,660 (9th least), Avg. Housing. According to the Social Security Administration, the average monthly benefit is $1,335. The average retirement cost in the state of $883,332 is over a quarter of a million dollars less than the national average. The Average Retirement Income In The United States. Est. Est. In Alabama, goods and services are about 14.2% cheaper than they are on average nationwide. The affordable and comfortable retirement is due largely to the state's low cost of living. Goods and services are 10.4% more expensive than average in Massachusetts. cost of living: 15.3% less than avg. Additionally, 65 year olds in the state live an average of about a year longer than the typical 65 year old American. What Is The Average Retirement Income In The United States? Whyare UK food prices still rocketing and when will it stop? Average Retirement Income in 2023 Are You Set? Benzinga As a result, the average annual expenditure of a retirement age state resident is about $5,700 less than it is across the U.S. Est. How much Americans are contributing to their 401(k) plans every year - CNBC New Jersey is the second most expensive state in the Northeast to retire and the fourth most expensive nationwide. cost of living:14.2% less than avg. The calculator's built-in formula will . total retirement spending: $1,002,765 (19th least), Avg. total retirement spending: $880,300 (4th least), Avg. Retrieved from, Oakley, D., & Kenneally, K. (2019, March). total retirement spending: $1,113,686 (19th most), Avg. Est. Haggle, slash and switch: five ways to cut household bills as UK prices soar, Rip-off Britain: why everything we buy now costs a fortune, UKwatchdogs agree on action plan to prevent consumers being ripped off, Bank forecast to raise rates above 5% as UK inflation falls by less than expected, AnnWiddecombe: dont have cheese sandwiches if you cant afford them. 65 & older: $430 (18th lowest). What a Comfortable Retirement Will Cost You in Each State Applying this amount to average life expectancy at 65 in Alabama, and accounting for additional unforeseeable expenses that can occur during retirement, it costs $877,072 to retire comfortably in Alabama, about $243,300 less than the average cost nationwide. The relative affordability of a comfortable retirement is due in part to the state's low cost of living. In 2023, the average monthly retirement income from Social Security is $1,827. However, the average easy access savings rate has increased to 2.48% from 2.45%. This amount will generally cover the cost of healthcare, housing and other necessary expenses while also allowing a little freedom as well. total retirement spending: $1,070,048 (23rd most), Avg. (2020, April 24). The average 65 year old living in Connecticut can expect to spend a total of about $1,237,000 to retire comfortably nearly $117,000 more than the typical American. 65 & older: $530 (18th highest). Est. We adjusted that figure by local cost of living, using state-level data on regional price parity in 2019 from the BEA and multiplied the result by 115% in order to reflect greater financial stability and comfort in retirement. As required by the new California Consumer Privacy Act (CCPA), you may record your preference to view or remove your personal information by completing the form below. Partially as a result, a comfortable retirement in the state costs $937,660, nearly $183,000 less than the average nationwide. Goods and services cost an average of 16.3% more in the state than they do nationwide. The ideal retirement program starts the moment a person starts working and grows throughout their working life. The Bank of Englands latest figures showed the highest level of withdrawals since it began collecting monthly data in 1997. Retirement: The cost of living comfortably in every state - USA TODAY Should I take a $1,913-a-month pension or a $445,000 lump sum? Retrieved from, Fidelity Investments. Retrieved from, Social Security Administration. Can I retire at 60 with 500K? Seventy percent of millennials are stressed and anxious about saving for retirement. All Rights Reserved. An estimated 18% of state residents are of retirement age, compared to 16.5% of all Americans. In Colorado, goods and services are about 2% more expensive than average, and life expectancy among retirement age residents is about half a year longer than the national average. (13th lowest), Median monthly homeownership cost, pop. From 2013 to 2017, the percentage of retired people who will be able to afford the basic necessities of life jumped from 38 to 45 percent. The typical retirement-age homeowner without a mortgage spends just $373 a month on housing, well below the comparable $499 monthly median nationwide. Thats a big increase for waiting five years or less to apply for Social Security. Another issue for retirees is the rising cost of health care and health insurance. Additionally, the cost of a comfortable retirement in Arizona is closely in line with the national average. Residents of the Lone Star State benefit from a cost of living that is about 3.5% lower than average. Older retirees tend to earn less than younger retirees. Retrieved from, Fidelity Investments. Write CSS OR LESS and hit save. (2020, May 21). Though it is a more expensive state to retire in than most, compared to most other states in the Northeast, it is relatively affordable. On average, seniors earn between $ 2,000 and $ 6,000 per month. 65 & older: $521 (19th highest). Is 5000 a month a good retirement income? The average Medicare Advantage plan's monthly premium was just $21 in 2021 a 34 percent decrease since 2017. Transamerica Institute. Another reason retirement is relatively affordable in South Carolina is the state's low life expectancy. 65 & older: $355 (5th lowest). The relative affordability of a comfortable retirement is due in part to the state's low cost of living. Annual pension benefits range from about $9,000 per year for a private pension to about $22,000 per year for federal government pensions . total retirement spending: $1,219,120 (8th most), Avg. However, life expectancy at age 65 in the state is nearly half a year longer than it is nationwide, which drives up average retirement costs. total retirement spending: $1,159,339 (13th most), Avg. 50+ Essential Retirement Statistics for 2023, Selling My Structured Settlement Payments, https://www.aarp.org/livable-communities/about/info-2018/2018-aarp-home-and-community-preferences-survey.html, https://acl.gov/sites/default/files/Aging%20and%20Disability%20in%20America/2020ProfileOlderAmericans.Final_.pdf, https://www.ahip.org/7-things-you-need-to-know-about-medicare-advantage/, https://www.federalreserve.gov/econres/notes/feds-notes/disparities-in-wealth-by-race-and-ethnicity-in-the-2019-survey-of-consumer-finances-20200928.htm, https://www.federalreserve.gov/publications/2020-economic-well-being-of-us-households-in-2019-retirement.htm, https://www.federalreserve.gov/publications/2021-economic-well-being-of-us-households-in-2020-executive-summary.htm, http://crr.bc.edu/wp-content/uploads/2015/10/Avg_ret_age_men.pdf, https://worldpopulationreview.com/state-rankings/average-retirement-income-by-state, https://web.archive.org/web/20230109133103/https://newsroom.fidelity.com/press-releases/news-details/2020/Fidelity-Q1-2020-Retirement-Analysis-Retirement-Savers-Stayed-the-Course-Despite-Economic-Crisis/default.aspx, https://sponsor.fidelity.com/bin-public/06_PSW_Website/documents/Building_Financial_Futures.pdf, https://news.nationwide.com/041921-millennials-may-not-be-retiring-soon-but-planning-for-it/, https://smartasset.com/financial-advisor/where-retirees-are-moving-2020, https://news.gallup.com/poll/350048/retirees-experience-differs-nonretirees-outlook.aspx, https://aperioncare.com/blog/retirement-age-around-world/, https://news.gallup.com/poll/234302/snapshot-americans-project-average-retirement-age.aspx, https://news.northwesternmutual.com/planning-and-progress-2021, https://www.nirsonline.org/wp-content/uploads/2019/02/OpinionResearch_final-1.pdf, https://www.pewsocialtrends.org/2019/03/21/retirement-social-security-and-long-term-care/, http://www.pensionrights.org/publications/statistic/how-many-american-workers-participate-workplace-retirement-plans, https://www.statista.com/statistics/194295/number-of-us-retired-workers-who-receive-social-security/, https://www.ssa.gov/policy/docs/chartbooks/fast_facts/2021/fast_facts21.html, https://www.ssa.gov/policy/docs/statcomps/eedata_sc/index.html, https://web.archive.org/web/20220714142611/https://s2.q4cdn.com/437609071/files/doc_news/research/2020/road-to-retirement-survey.pdf, https://transamericacenter.org/docs/default-source/retirement-survey-of-workers/tcrs2021_sr_four-generations-living-in-a-pandemic.pdf, https://transamericainstitute.org/docs/default-source/research/women-retirement-security-report.pdf, https://www.bls.gov/opub/reports/consumer-expenditures/2019/pdf/home.pdf, https://www.bls.gov/cex/tables/calendar-year/mean-item-share-average-standard-error/reference-person-age-ranges-2020.pdf, https://www.bls.gov/ncs/ebs/benefits/2021/employee-benefits-in-the-united-states-march-2021.pdf, Rules for Rolling Your IRA or 401(k) Into an Annuity, How To Withdraw Money From Retirement Accounts, This article contains incorrect information, This article doesn't have the information I'm looking for. Goods and services in the state are 11.6% less expensive on average than they are nationwide. 65 & older: $313 (the lowest). My position was eliminated after 21 years of progressively responsible employment in 2021. 65 & older: $374 (8th lowest). Est. :Here's what you need to know before you buy or mine it. cost of living: 16.3% more than avg. Still, average retirement costs in the state are driven up by a longer life expectancy. The more affordable retirement is due both to the state's relatively low cost of living and lower than average life expectancy. Thanks to an 8.7% jump in the Social Security cost-of-living adjustment, the average Social Security benefit increased to $1,827 per month in 2023, up from $1,681 in 2022. As a general rule, you'll need about 70-80% of your pre-retirement income to maintain a similar standard of living in retirement and cover your expenses. cost of living: 10.4% more than avg. (5th highest), Median monthly homeownership cost, pop. Please wait a moment and try again. total retirement spending: $1,383,635 (3rd most), Avg. Retrieved from, Rudden, J. Seventy-two percent of workers had access to retirement benefits. Our structured settlement calculator is designed for people who have a structured settlement and are considering. In general, single people depend more heavily on Social Security checks than do married people. Here is what you can do if the coronavirus is threatening your retirement. The most consequential factor, however, is the state's high cost of living. in Alaska, for example, the typical monthly housing expenses $536 among the 65 and older population without a mortgage, more than in most other states. National Pension Scheme, Average Pension in US Per Month total retirement spending: $1,064,388 (24th most), Avg. Actual benefits depend on employment history and the complete compensation rules that Social Security uses. Retrieved from, Horan, S.C. (2020, March 10). Forty-eight percent of workers believe they dont make enough money to adequately save for retirement. For a 65 year old in Kansas whose life expectancy aligns with the statewide average, a comfortable retirement will cost an estimated $978,798, $141,600 less than it does nationwide. (23rd highest). How many American workers participate in workplace retirement plans? total retirement spending: $1,148,938 (15th most), Avg. Est. The average private pension in the United States today is about $10,788, according to data from the Pension Rights Center. cost of living: 3.1% more than avg. Est. What other financial concerns should we consider for retirement? (2020, January). On average, seniors earn between $ 2,000 and $ 6,000 a month. (25th lowest), Median monthly homeownership cost, pop. The average 65 year old living in Washington can expect to spend a total of $1,245,825 in retirement more than in all but five other states. (19th lowest), Median monthly homeownership cost, pop. cost of living: 7.2% less than avg. KEY TIPS. Annuity.org writers adhere to strict sourcing guidelines and use only credible sources of information, including authoritative financial publications, academic organizations, peer-reviewed journals, highly regarded nonprofit organizations, government reports, court records and interviews with qualified experts. (2021). A comfortable retirement will cost the average 65 year old in Mississippi just $857,886, less than in every other state in the country and about $262,500 less than the national average. Just 14.3% of state residents are 65 or older, compared to 16.5% of all Americans. Aperion Care. Est. cost of living: 15.6% less than avg. Still, a comfortable retirement costs an estimated $1,036,476 in New Mexico, about $84,000 less than average. 25-29: $ 9,408.51. 65 & older: $545 (13th highest). For the average 65 year old in Wisconsin, a comfortable retirement is projected to cost $1,045,578, which is about $74,831 less than the national average. Of course, these are all 'back-of-the-napkin' calculations. Est. Virginia is one of the exceptions, however. Kim Borwick is a writer and editor who studies financial literacy and retirement annuities. (19th highest), Median monthly homeownership cost, pop. cost of living: 7.8% less than avg. Est. The average American under 35 has $13,000 saved for retirement. Depending on the state, the cost of a comfortable retirement varies from as little as $858,000 to as much as $1.5 million. Sorry there was an error. Finally, to determine the amount needed to last the average retiree for the rest of his or her life, we multiplied the adjusted annual expenditure figure by the average life expectancy at age 65, using state-level data from the IMHEs Global Health Data Exchange for 2017. Maine is a popular state for retirees. According to payment statistics from the Social Security Administration in June 2020, the average Social Security benefit at age 62 is $ 1,130.16 per month, or $ 13,561.92 per year. Indiana is one of only 10 states nationwide where a 65 year old can retire and live comfortably with less than $950,000. Hopefully your goal is to be 40 years above average when it comes to building wealth. Twenty-two percent of Americans have less than $5,000 saved for retirement, and 15 percent have no retirement savings whatsoever. Est. This means that, in order to collect full social security benefits, a person has to wait until they are 67 years old to start collecting. The Average Salary Of A Starbucks Store Manager, The Average Cost Of Car Insurance Per Month, How To Apply For Low Income Housing Units, How To Check Immigration Status Online With An Alien Number. Research by the Federal Reserve found that the median retirement account balance in the US, considering only those with retirement accounts, was just $ 65,000 in 2019 (the survey is conducted every three years) . $426,070. cost of living: 10.5% less than avg. Retrieved from, Nationwide. Mean retirement income: $71,466. Retrieved from, TD Ameritrade. In Minnesota, 65 year olds are expected to live another 20.3 years on average, about a year longer than the typical American 65 year old. What is a good amount of pension? A few other income data points for people of retirement age are illustrated below. Goods and services in the state are 19.3% more expensive than they are on average nationwide, and the average 65 year old should plan on spending $1,481,336 throughout retirement, nearly $361,000 more than the national average. Est. What Is a Good Monthly Retirement Income? - U.S. News cost of living: 19.3% more than avg. Is your location closing in 2021? Colorado has a relatively small retirement population. At age 40: Save triple your annual salary. Here is what you can do if the coronavirus is threatening your retirement, Institute for Health Metrics and Evaluation, Why new investors bought stock during the pandemic. What is the average retirement income for 2023? In all, this means the average American retiree (or those 65 and older) is spending about $3,700 per month -- or about $44,600 per year. Goods and services are 6.5% more expensive in New Hampshire than they are on average nationwide. Est. For the typical 65 year old without a mortgage, monthly housing costs come to $407, nearly $100 less than the comparable national median. (13th highest), Median monthly homeownership cost, pop. New York is the most expensive state in the Northeast to retire in and the third most expensive state nationwide. Accounting for both cost of living and average life expectancy, the average American retiring in Arizona is projected to spend $1,117,884 only about $2,500 more than the typical U.S. retiree. Life in the COVID-19 Pandemic: Womens Health, Finances, and Retirement Outlook. Two percent, or 1.2 million . In recent years, it is estimated that more people are taking retirement planning seriously and are putting aside more money for their golden years. Transamerica Institute. All data are for the most recent period available. The age for receiving full Social Security retirement benefits will gradually increase from 65 to 67 over a 22-year period beginning in 2000 for those who retire at 62. Disparities in Wealth by Race and Ethnicity in the 2019 Survey of Consumer Finances. Here's What the Average Retired American's Budget Looks Like The average 65 year old in the state will spend an estimated $1,113,686 through retirement, only about $6,700 less than the average American retiree. On average, a 65 year old will need about $1.4 million for a comfortable retirement, about $271,100 more than what the typical retiree nationwide will need and the second highest retirement cost of all states. Housing is particularly inexpensive. Average Retirement Income 2023: How Do You Compare? Despite its affordability, Utah has a relatively small retirement-age population. Kentucky is one of only five states nationwide where a 65 year old can retire and live comfortably with less than $900,000. South Dakota is one of the least expensive states to live in. The average retirement age in the United States is 62 for retirees, while the expected retirement age for current workers is 64. According to the Transamerica Center for Retirement Studies, the median total household retirement savings across all workers is approximately $93,000. The lower than average cost is attributable in part to the state's low cost of living. (2021). This article was helpful in analyzing my current situation. 55-64. (2018, March). cost of living: 2% less than avg. Over half (55 percent) of workers plan to work in retirement. Seventy-two percent of listed reasons for working in retirement were healthy-aging reasons, including staying active (47 percent), keeping the brain alert (39 percent), maintaining a sense of purpose (34 percent) and maintaining social connections (21 percent). cost of living: 3.5% less than avg. In 2020, average annual spending by Americans ages 65 and older was $47,579. We saw in the previous section that our couple would need $4,000 per month ($48,000 per year) from their savings. Our free tool can help you find an advisor who serves your needs. (20th highest), Median monthly homeownership cost, pop. By How Much Does You Car Insurance Go Up After an At-Fault Accident? 65 & older: $406 (12th lowest). Average Retirement Savings in the U.S.: $65,000 - The Motley Fool A relatively large share of Montana's population are 65 or older. If you retire at 60 with 500k in the UK, you could reasonably expect to take between 15-20K from your pension each year. total retirement spending: $1,391,547 (2nd most), Avg. (25th highest), Median monthly homeownership cost, pop. For one thing, the value of their retirement income decreases as the cost of living continues to rise.