Introduction to Retirement Concerns
Retirement remains a primary concern for many Americans, whether they are nearing their golden years or have decades left in the workforce.
The amount of savings required to retire without financial stress is a key factor in preparation, and this can differ based on location and income sources.
GOBankingRates Study Overview
A study released this week by GOBankingRates calculated the savings needed for a comfortable retirement without Social Security income, along with yearly expenses in each U.S. state.
This analysis arrives as Social Security faces potential funding shortfalls in its trust funds.
Social Security Funding Issues
The trustees for Social Security and Medicare recently found that if the Old-Age and Survivors Insurance and Disability Insurance trust funds were combined, they could pay 100% of scheduled benefits until 2034, one year earlier than last reported.
After that, the funds would cover only 81% of benefits, resulting in a mandatory 19% cut for recipients.
Benchmark for Comfortable Retirement
For the study, the benchmark for a comfortable retirement was defined as holding twice the amount of money as the cost of living expenses.
State Variations in Required Savings
Hawaii tops the list for the most savings needed to retire comfortably at 60 without Social Security, while West Virginia requires the least.
GOBankingRates determined the nest egg required for a comfortable retirement at 60 without Social Security in each state.
Required Savings by State
- Alabama ($70,492 cost of living per year): $1,409,839
- Alaska ($110,457 cost of living per year): $2,209,137
- Arizona ($100,281 cost of living per year): $2,005,627
- Arkansas ($67,502 cost of living per year): $1,350,045
- California ($155,117 cost of living per year): $3,102,333
- Colorado ($114,744 cost of living per year): $2,294,882
- Connecticut ($105,428 cost of living per year): $2,108,563
- Delaware ($94,392 cost of living per year): $1,887,834
- Florida ($97,119 cost of living per year): $1,942,374
- Georgia ($86,005 cost of living per year): $1,720,096
- Hawaii ($186,062 cost of living per year): $3,721,237
- Idaho ($101,912 cost of living per year): $2,038,236
- Illinois ($79,736 cost of living per year): $1,594,716
- Indiana ($74,029 cost of living per year): $1,480,575
- Iowa ($71,373 cost of living per year): $1,427,463
- Kansas ($71,534 cost of living per year): $1,430,672
- Kentucky ($71,410 cost of living per year): $1,428,204
- Louisiana ($67,482 cost of living per year): $1,349,639
- Maine ($98,612 cost of living per year): $1,972,231
- Maryland ($101,991 cost of living per year): $2,039,812
- Massachusetts ($136,626 cost of living): $2,732,517
- Michigan ($73,780 cost of living per year): $1,475,595
- Minnesota ($88,321 cost of living per year): $1,766,414
- Mississippi ($65,523 cost of living per year): $1,310,451
- Missouri ($73,667 cost of living per year): $1,473,335
- Montana ($102,916 cost of living per year): $2,058,322
- Nebraska ($76,792 cost of living per year): $1,535,846
- Nevada ($103,661 cost of living per year): $2,073,215
- New Hampshire ($110,761 cost of living per year): $2,215,216
- New Jersey ($118,338 cost of living per year): $2,366,765
- New Mexico ($81,627 cost of living per year): $1,632,542
- New York ($105,619 cost of living per year): $2,112,384
- North Carolina ($86,857 cost of living per year): $1,737,146
- North Dakota ($78,734 cost of living per year): $1,574,682
- Ohio ($73,120 cost of living per year): $1,462,391
- Oklahoma ($69,161 cost of living per year): $1,383,214
- Oregon ($111,541 cost of living per year): $2,230,814
- Pennsylvania ($78,582 cost of living per year): $1,571,642
- Rhode Island ($109,811 cost of living per year): $2,196,222
- South Carolina ($81,586 cost of living per year): $1,631,721
- South Dakota ($81,949 cost of living per year): $1,638,979
- Tennessee ($81,474 cost of living per year): $1,629,482
- Texas ($81,985 cost of living per year): $1,639,693
- Utah ($110,623 cost of living per year): $2,212,458
- Vermont ($97,999 cost of living per year): $1,959,971
- Virginia ($96,141 cost of living per year): $1,922,813
- Washington ($126,952 cost of living per year): $2,539,048
- West Virginia ($64,715 cost of living per year): $1,294,300
- Wisconsin ($84,485 cost of living per year): $1,689,700
- Wyoming ($88,792 cost of living per year): $1,775,841
Retirement Confidence Survey
In early June, a Gallup survey found that 50% of non-retired U.S. adults who own a retirement savings account expect to have enough to live comfortably in retirement.
Confidence was lower among those without a retirement savings account, with only 31% anticipating sufficient funds for comfortable golden years.
