Retirees face significant financial shortfalls in meeting essential living expenses emphasizing the need for improved retirement security nationwide.
Disparities in Retirement Income Across America
A recent study by GO Banking Rates reveals significant differences in retirement incomes across states, impacting retirees’ financial security nationwide. Some states show higher average retirement incomes but many retirees still struggle to cover essential living expenses.
Alaska leads with an average retirement income of $42,676 annually. However, retirees need $86,796 per year for a comfortable retirement leaving a shortfall of $44,120. Maryland follows closely with retirees earning $40,129 annually but needing $80,621 for comfort resulting in a gap of $40,492. California faces a larger disparity with retirees earning $38,967 but needing $100,603 annually, leaving a shortfall of $61,636.
In contrast, states like Indiana and West Virginia have lower average retirement incomes of $23,466 and $24,639 respectively. Despite lower living costs retirees still fall short financially needing $62,652 and $58,142 annually for a comfortable retirement revealing deficits of $39,186 and $33,503 respectively.
(photo: Synchrony Bank)
Wide Disparities in Retirement Income Highlight Financial Struggles Across States
Hawaii highlights a stark contrast with retirees earning $37,825 annually but needing $129,189 for a comfortable retirement, resulting in a substantial deficit of $91,364. Virginia with an average retirement income of $37,730, needs $70,284 annually for comfort leaving a shortfall of $32,554.
These findings underscore the challenges of retirement preparedness in America. Even in states with higher average incomes, many retirees struggle due to high living costs and healthcare expenses. Addressing these challenges remains crucial for policymakers and financial planners as they seek to improve retirement security for millions of Americans.
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