Top Southern States for Affordable Retirement Savings Needed
Recent research from GOBankingRates reveals that the most budget-friendly states for retirement are primarily located in the South. A middle-class couple looking to retire for 20 years in Mississippi will need approximately $270,000 after accounting for Social Security benefits.
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Of the ten states identified as the most affordable for retirement, eight are found in the South. This article outlines how much savings couples need for a comfortable retirement across these Southern states.
Alabama
- Middle-class income range: $41,351 to $124,054
- Amount needed for 20-year retirement with Social Security: $364,868
- Amount needed for 20-year retirement without Social Security: $827,027
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Arkansas
- Middle-class income range: $39,182 to $117,546
- Amount needed for 20-year retirement with Social Security: $321,482
- Amount needed for 20-year retirement without Social Security: $783,640
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Georgia
- Middle-class income range: $49,776 to $149,328
- Amount needed for 20-year retirement with Social Security: $533,362
- Amount needed for 20-year retirement without Social Security: $995,520
Kentucky
- Middle-class income range: $41,611 to $124,834
- Amount needed for 20-year retirement with Social Security: $370,068
- Amount needed for 20-year retirement without Social Security: $832,227
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Mississippi
- Middle-class income range: $36,610 to $109,830
- Amount needed for 20-year retirement with Social Security: $270,042
- Amount needed for 20-year retirement without Social Security: $732,200
North Carolina
- Middle-class income range: $46,603 to $139,808
- Amount needed for 20-year retirement with Social Security: $469,895
- Amount needed for 20-year retirement without Social Security: $932,053
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Oklahoma
- Middle-class income range: $42,402 to $127,206
- Amount needed for 20-year retirement with Social Security: $385,882
- Amount needed for 20-year retirement without Social Security: $848,040
Retirement Savings Needs for Middle-Class Families in Southern States
South Carolina
- Middle-class income range: $44,545 to $133,636
- Amount needed for 20-year retirement with Social Security: $428,748
- Amount needed for 20-year retirement without Social Security: $890,907
Tennessee
- Middle-class income range: $44,731 to $134,194
- Amount needed for 20-year retirement with Social Security: $432,468
- Amount needed for 20-year retirement without Social Security: $894,627
Texas
- Middle-class income range: $50,861 to $152,584
- Amount needed for 20-year retirement with Social Security: $555,068
- Amount needed for 20-year retirement without Social Security: $1,017,227
Virginia
- Middle-class income range: $60,649 to $181,948
- Amount needed for 20-year retirement with Social Security: $750,828
- Amount needed for 20-year retirement without Social Security: $1,212,987
West Virginia
- Middle-class income range: $38,611 to $115,834
- Amount needed for 20-year retirement with Social Security: $310,068
- Amount needed for 20-year retirement without Social Security: $772,227
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Methodology: GOBankingRates conducted an analysis to determine the savings needed for retirement in various states. The study examined population data, including demographics of those aged 65 and over, total households, and household median income using the U.S. Census American Community Survey. Cost of living data was sourced from the Missouri Economic Research and Information Center, while the Bureau of Labor Statistics Consumer Expenditure Survey provided insights into average expenditure costs. Average single-family home values as of December 2024 were obtained from the Zillow Home Value Index. Additionally, average mortgage costs were calculated with a presumed 10% down payment based on the national average 30-year fixed mortgage rate sourced from the Federal Reserve Economic Research. Middle-class income, defined by Pew Research Center as two-thirds to double the national median income, was utilized to calculate necessary retirement savings. All data was collected and is current as of January 24, 2025.
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This article originally appeared on GOBankingRates.com: How Much You Need Saved To Live a Middle-Class Retirement in the South
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