Americans may need to reconsider their retirement destinations if they worry about outliving their savings — but few options look promising.
A new report from the Seniorly Resource Center reveals that most states, including popular retirement spots like Arizona, Florida, Texas, and Nevada, rank among the places where the average retiree could struggle financially. The study analyzed savings and income gaps across 41 states and the District of Columbia.
According to the report, the typical 65-year-old American can expect about $762,000 in Social Security benefits and other retirement income over an average remaining lifespan of 18.2 years. However, retirement expenses are estimated at $877,000, leaving a shortfall of around $115,000.
Seniorly warns of an impending “retirement crisis” across nearly the entire country.
Retirement shortfalls projected in most states
Arizona ranks 39th for retirement finances. Seniorly estimates the average 65-year-old in Arizona will live 18.1 more years and receive about $787,000 in total income during that time. However, expenses are projected at $941,000, creating a gap of $154,000.
To calculate retirement income, Seniorly considered household net worth in addition to Social Security payments.
The largest shortfalls appear in New York ($448,000), Hawaii ($417,000), and Washington, D.C. ($407,000). California also struggles, with an average projected gap of $337,000.
Only a few states show retirees ending up with extra money. Washington leads with an estimated $146,000 surplus, followed by Utah ($121,000) and Montana ($43,000).
Several other popular retirement destinations also perform poorly. Texas faces a $113,000 shortfall, Nevada $134,000, and Florida $148,000.
Tips for stretching retirement dollars
Retirees and those nearing retirement can often increase their income through a few strategies. These include delaying Social Security benefits, working longer than originally planned, taking on side gigs in retirement, and investing more aggressively over time by using a mix of stock and bond funds instead of relying solely on conservative options like certificates of deposit or money-market accounts.
On the expense side, downsizing and moving to more affordable areas can significantly reduce costs. MIT’s easy-to-use calculator can estimate living expenses in different states, counties, and major urban areas. Although designed to compare minimum wages to living wages for workers, it can also help retirees project expenses in various locations.
For instance, the calculator shows that living costs in Tucson and Pinal County can be about 20% lower in some cases compared to metro Phoenix.
The Seniorly analysis also considered life expectancy, which impacts retirement-shortfall calculations. Longer life spans mean retirees need their money to last longer. For example, Hawaiians live an average of 20.6 more years after age 65, compared with 16.8 years in Louisiana and 16.1 years in Mississippi.
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