Overview of Retirement Funding Sources
Retirement nest eggs and Social Security benefits serve as key sources of funds for many Americans as they live out their golden years in the state of their choosing.
Key Findings from the GOBankingRates Study
A recently-released study from GOBankingRates looked at the financial runway that retirees would have in each state with Social Security benefits and $1.5 million socked away for retirement, finding West Virginia offered the most years before living costs would deplete their retirement savings.
The Mountain State ranked No. 1 with $1.5 million in retirement savings expected to sustain retirees there for a whopping 54 years while facing about $27,800 in living costs each year after Social Security benefits, according to the study.
Overall, the study indicated that those two sources of funds would provide different amounts of years of financial security for retirees in states across the country. States’ cost of living after Social Security ranged from $27,803 to $87,770 per year, it found.
Social Security Administration Details
The Social Security Administration (SSA) allows Americans to access their Social Security retirement benefits early starting at age 62, though payments will be reduced a small percentage for each month before your full retirement age if they do that, according to the SSA. One’s full retirement age depends on when a person was born.
Study Methodology
GOBankingRates said it used data from a slew of sources, including the Bureau of Labor Statistics, the SSA and Missouri Economic Research and Information Center, to determine its rankings of how states stack up in terms of the amount of time that Social Security and $1.5 million in retirement would last retirees residing in them.
Sustainability Across States
GoBankingRates found the number of years that $1.5 million and Social Security would sustain retirees in each state was variable, influenced by local costs.
