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CareScout Report Projects $109,000 Average Retirement Shortfall at 65 but Surpluses in Nine States
A new analysis finds seniors in 41 states plus the District of Columbia are likely to outlive savings. New York, the District of Columbia and California show the largest projected gaps.
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Usa Today reported that a CareScout analysis projects the average American at age 65 will face a $109,000 gap between expected retirement income and expenses. The report bases its estimates on state-level life expectancy at 65, which ranges from 16 to 20 years, along with average retirement benefits, median net worth and projected daily living costs.
Seniors in New York face the largest shortfall at $471,000, with expected expenses of $1.18 million against $712,000 in income.
The District of Columbia follows at $432,000, and California at $395,000. Retirees in New York, California, Alaska and Massachusetts are more likely to outlive savings due to higher living costs. CareScout identifies nine states where retirees can expect a surplus.
Washington leads with a projected $276,000 surplus, followed by New Hampshire at $240,000 and Colorado at $188,000. Retirees in Minnesota, Utah and Colorado benefit from higher retirement income and more manageable expenses. CareScout CEO Samir Shah said Americans are not ready for retirement.
“People have not thought about how much money they will need in retirement,” he said. AARP research shows many older Americans do not work with professional retirement planners. American life expectancy stands at about 79 years, though a woman age 70 can expect to reach 87.
The report notes that Social Security benefits do not run out, but savings can, which is why many Americans aim for at least $1 million in retirement savings.
