Only 9 States Give Retirees the Best Shot at Making Their Savings Last. Is Yours One of Them?
Retirement savings can look comfortable on paper until decades of housing, food, health care, and everyday expenses enter the calculation. A Seniorly analysis found that retirees in 41 states and Washington, D.C., are projected to face a shortfall, while just nine states come out ahead. The difference can reach hundreds of thousands of dollars, and some of the states offering the best odds may not be the ones retirees expect.
The Average Retirement Shortfall Reaches About $115,000
Across the country, older Americans face an estimated $115,000 average gap between projected retirement expenses and the money available from Social Security, savings, and investments. The concern is already widespread. A Northwestern Mutual survey cited by Seniorly found that more than half of Gen Xers and 40% of Baby Boomers expect to outlive their savings. Where retirees settle can significantly alter that financial equation.
Seniorly Calculated How Long the Money Has to Last
The ranking goes beyond comparing state prices. Seniorly used life expectancy at age 65 to estimate the length of retirement, then calculated expected income using Social Security benefits and household net worth. Researchers estimated expenses for essentials such as housing, groceries, transportation, and health care, adjusting them for each state’s cost of living. The result reveals where the typical retiree ends up with money left over and where savings fall short.
South Carolina Makes the Cut With Just $2,000 to Spare
The first group shows just how narrow the margin can be. South Carolina ranks ninth, with retirees projected to finish with only about $2,000 remaining. Kansas comes next at roughly $8,000, followed by Maryland at $13,000 and Minnesota at $23,000. These states technically produce a surplus, but the figures show that making the favorable list does not necessarily mean retirees have a large financial safety net.
Iowa, Colorado and Montana Give Retirees More Breathing Room
The financial cushion grows as the ranking moves higher. Iowa comes in fifth with a projected $32,000 surplus, while Colorado reaches about $38,000. Montana, ranked third, pushes the figure to approximately $43,000. Seven of the nine states with projected surpluses are located in the West or Midwest, revealing a geographic pattern among the places where retirement income is expected to stretch furthest.
Utah and Washington Pull Far Ahead of the Other 7 States
The final two states separate themselves dramatically from the rest. Utah ranks second, with retirees projected to have about $121,000 left over, based on roughly $994,000 in income against $873,000 in expenses. Washington takes the top spot, with a projected surplus of about $146,000. Its retirees are expected to bring in approximately $1.13 million while spending around $985,000 over nearly 20 years of retirement.
New York Retirees Face a $448,000 Gap
The opposite end of the ranking shows how quickly the numbers can unravel. New York has the largest projected shortfall at about $448,000. A typical senior there is expected to need roughly $1.12 million over 19.4 years of retirement while having about $670,000 available. Hawaii follows with a $417,000 deficit, while Washington, D.C., faces roughly $407,000. Alaska and California round out the five toughest financial outlooks.
Hawaii Shows Why a Bigger Nest Egg May Still Fall Short
One of the ranking’s biggest surprises is Hawaii. Seniors there have the highest projected retirement income in the analysis at about $1.32 million, yet the state ranks near the bottom. Retirees at 65 are expected to live another 20.6 years, while projected lifetime expenses reach roughly $1.74 million. The combination of longevity and high living costs overwhelms even one of the country’s largest projected retirement incomes.
Your Own Retirement Math May Look Very Different
State averages cannot determine whether one person’s savings will last. Individual retirement plans depend on expected Social Security, pensions, savings, investments, housing costs, health expenses, and how many years the money may need to cover. Seniorly recommends knowing those numbers rather than relying solely on averages, while also accounting for unexpected costs and inflation. For people with flexibility, location becomes another variable that can substantially change the calculation. 4 4
The 9 State Winners Still Come With a Warning
Washington, Utah, Montana, Colorado, Iowa, Minnesota, Maryland, Kansas, and South Carolina are the only states in the analysis where the typical retiree is projected to finish retirement with a surplus. Yet the range runs from Washington’s roughly $146,000 cushion to South Carolina’s razor thin $2,000. The ranking ultimately shows that location can give retirement savings an advantage, but even landing in one of the nine states offers no guarantee for an individual household.