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When Can You Afford to Retire? A New Analysis by State
The typical retirement age Americans aim for is 66, according to various polls. However, the actual average retirement age remains at 61—an increase from 57 in 1991, as reported by Gallup. Those born after 1960 can receive full Social Security benefits at age 67, but early withdrawal is allowed at 62. With proper savings and a favorable cost of living, some may even retire earlier than this age.
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To help you gauge your savings needs for retirement, GOBankingRates used various data points to compute an estimated retirement age by state. The analysis focused on how much Americans should save and when they can realistically retire based on living expenses within their state.
GOBankingRates calculated the median income and compared it with an ideal savings goal for each state, guided by several assumptions:
- Workers start earning money at age 22.
- Using the 50/30/20 rule: 50% for necessities, 30% for wants, and 20% for savings.
- Of the 20% saved, 14% goes into a savings account and 6% into a 401(k) with a 50% employer match (up to 3%). The projected annual return on the 401(k) investment is 5%.
This methodology helped find how much median-income workers could accumulate by ages 24, 34, 44, and from 58 to 74. Once the ideal savings amount was reached, the following year marked the suggested retirement age for that state.
Your results may vary; saving 20% of your income from age 22 might mean earlier retirement than expected— or necessitate working longer if you fall short.
Alabama
- Realistic retirement age: 58
- How much savings you need to retire: $818,555
- Total savings at 58: $839,485
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Alaska
- Realistic retirement age: 63
- How much savings you need to retire: $1,487,698
- Total savings at 63: $1,488,200
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Arizona
- Realistic retirement age: 60
- How much savings you need to retire: $1,126,187
- Total savings at 60: $1,140,377
Arkansas
- Realistic retirement age: 62
- How much savings you need to retire: $862,006
- Total savings at 62: $891,863
California
- Realistic retirement age: 66
- How much savings you need to retire: $1,678,882
- Total savings at 66: $1,687,854
Colorado
- Realistic retirement age: 56
- How much savings you need to retire: $1,105,331
- Total savings at 56: $1,145,885
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Connecticut
- Realistic retirement age: 61
- How much savings you need to retire: $1,317,371
- Total savings at 61: $1,361,730
Delaware
- Realistic retirement age: 61
- How much savings you need to retire: [Data Not Provided]
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State-by-State Breakdown of Retirement Savings Needs
Understanding how much money you’ll need to retire comfortably is crucial. Here’s a look at the realistic retirement ages and savings targets for different states across the U.S.
Florida
- Realistic retirement age: 63
- Total savings required to retire: $1,074,046
- Total savings at age 63: $1,095,684
Georgia
- Realistic retirement age: 56
- Total savings needed to retire: $827,246
- Total savings at age 56: $829,490
Hawaii
- Realistic retirement age: 75-plus
- Total savings required to retire: $2,485,329
- Total savings at age 74: $2,333,542
Idaho
- Realistic retirement age: 56
- Total savings needed to retire: $1,018,429
- Total savings at age 56: $1,037,493
Illinois
- Realistic retirement age: 53
- Total savings required to retire: $896,767
- Total savings at age 53: $927,403
Indiana
- Realistic retirement age: 54
- Total savings needed to retire: $849,840
- Total savings at age 54: $864,704
Iowa
- Realistic retirement age: 53
- Total savings required to retire: $837,674
- Total savings at age 53: $847,550
Kansas
- Realistic retirement age: 52
- Total savings needed to retire: $808,127
- Total savings at age 52: $843,700
Kentucky
- Realistic retirement age: 62
- Total savings required to retire: $936,742
- Total savings at age 62: $976,950
Louisiana
- Realistic retirement age: 60
- Total savings needed to retire: $914,147
- Total savings at age 60: $921,145
Maine
- Realistic retirement age: 63
- Total savings required to retire: $1,291,300
- Total savings at age 63: $1,304,883
Maryland
- Realistic retirement age: 59
- Total savings needed to retire: $1,442,509
- Total savings at age 59: [Data Not Shown]
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Essential Savings for Retirement Across the U.S.
As individuals plan for their future, knowing when to retire and how much savings is needed is crucial. Here’s a breakdown of realistic retirement ages and necessary savings across various states.
Massachusetts
- Realistic retirement age: 68
- How much savings you need to retire: $1,889,184
- Total savings at 68: $1,936,486
Michigan
- Realistic retirement age: 57
- How much savings you need to retire: $889,815
- Total savings at 57: $909,639
Minnesota
- Realistic retirement age: 54
- How much savings you need to retire: $981,931
- Total savings at 54: $990,991
Mississippi
- Realistic retirement age: 61
- How much savings you need to retire: $764,676
- Total savings at 61: $784,444
Missouri
- Realistic retirement age: 56
- How much savings you need to retire: $835,936
- Total savings at 56: $857,775
Montana
- Realistic retirement age: 62
- How much savings you need to retire: $1,108,807
- Total savings at 62: $1,141,505
Nebraska
- Realistic retirement age: 53
- How much savings you need to retire: $884,601
- Total savings at 53: $914,016
Nevada
- Realistic retirement age: 61
- How much savings you need to retire: $1,080,998
- Total savings at 61: $1,082,212
New Hampshire
- Realistic retirement age: 58
- How much savings you need to retire: $1,305,205
- Total savings at 58: $1,310,065
New Jersey
- Realistic retirement age: 57
- How much savings you need to retire: $1,240,897
- Total savings at 57: $1,249,174
New Mexico
- Realistic retirement age: 62
- How much savings you need to retire: $921,099
- Total savings at 62: $938,911
New York
- Realistic retirement age: 68
- How much savings you need to retire: $1,625,003
- Total savings at 68: $1,631,225
Understanding these figures can help in planning for a secure retirement. It is important to start saving early and regularly review financial goals to ensure a comfortable future.
Retirement Readiness: What You Need to Know by State
North Carolina
- Realistic retirement age: 59
- How much savings you need to retire: $950,646
- Total savings at 59: $969,234
North Dakota
- Realistic retirement age: 58
- How much savings you need to retire: $974,978
- Total savings at 58: $1,015,746
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Ohio
- Realistic retirement age: 58
- How much savings you need to retire: $884,601
- Total savings at 58: $924,423
Oklahoma
- Realistic retirement age: 56
- How much savings you need to retire: $778,581
- Total savings at 56: $810,593
Oregon
- Realistic retirement age: 62
- How much savings you need to retire: $1,393,844
- Total savings at 62: $1,437,528
Pennsylvania
- Realistic retirement age: 57
- How much savings you need to retire: $994,097
- Total savings at 57: $1,024,444
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Rhode Island
- Realistic retirement age: 61
- How much savings you need to retire: $1,249,588
- Total savings at 61: $1,261,212
South Carolina
- Realistic retirement age: 59
- How much savings you need to retire: $926,313
- Total savings at 59: $963,855
South Dakota
- Realistic retirement age: 55
- How much savings you need to retire: $929,790
- Total savings at 55: $952,724
Tennessee
- Realistic retirement age: 57
- How much savings you need to retire: $855,054
- Total savings at 57: $877,886
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Texas
- Realistic retirement age: 56
- How much savings you need to retire: $895,029
- Total savings at 56: $909,165
Utah
- Realistic retirement age: 54
- How much savings you need to retire: $1,074,046
- Total savings at 54: $1,079,790
Your State’s Ideal Retirement Age and Savings Requirements Revealed
Vermont
- Realistic retirement age: 62
- Required savings for retirement: $1,301,729
- Total savings at 62: $1,336,090
Virginia
- Realistic retirement age: 56
- Required savings for retirement: $1,074,046
- Total savings at 56: $1,082,679
Washington
- Realistic retirement age: 58
- Required savings for retirement: $1,272,182
- Total savings at 58: $1,292,473
West Virginia
- Realistic retirement age: 63
- Required savings for retirement: $851,578
- Total savings at 63: $859,100
Wisconsin
- Realistic retirement age: 57
- Required savings for retirement: $947,170
- Total savings at 57: $986,585
Wyoming
- Realistic retirement age: 55
- Required savings for retirement: $895,029
- Total savings at 55: $916,094
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Methodology: GOBankingRates calculated the most realistic retirement age per state by analyzing income data collected in the 2021 Current Population Survey from the U.S. Census Bureau. The agency created an “income index” by comparing median incomes in states with the national median. Using this data, GOBankingRates defined a savings goal assuming a 4% annual withdrawal to cover living expenses. Additionally, they assumed individuals start saving at 22 years old, following the 50/30/20 rule (savings of 20% of income), and securing returns of about 5% from a 401(k) and savings accounts. All data was current as of April 18, 2023.
“Here’s Exactly How Much Savings You Need to Retire in Your State” Methodology: GOBankingRates estimated the annual expenses for retirees by using the Bureau of Labor Statistics’ 2021 Consumer Expenditure Survey data adjusted for state living costs from the Missouri Economic Research and Information Center’s 2022 cost of living figures. They derived retirement savings needs by calculating annual costs post-Social Security benefits, then dividing by .04 to represent a 4% withdrawal rate. All data was up to date as of April 18, 2023.
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This article originally appeared on GOBankingRates.com: The Most Realistic Retirement Age in Every State
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
