Overview
- CareScout’s state‑level analysis released June 26 found the typical 65‑year‑old will have about $788,000 in retirement income but face roughly $897,000 in expenses, producing a median shortfall of $109,000 and leaving retirees in 41 states plus Washington, D.C. at risk of outliving savings.
- The largest projected deficits are concentrated in high‑cost places with New York at about a $471,000 shortfall, the District of Columbia $432,000, California $395,000 and Alaska $350,000.
- Only nine states show projected retirement surpluses—including Washington, New Hampshire, Colorado, Nebraska and Idaho—where higher expected income or lower expenses give retirees a cushion.
- CareScout and other analysts attribute the gap to longer life expectancies, rising care and living costs, and households tapping retirement accounts early, a trend the Federal Reserve says affects about 8% of non‑retired adults.
- The report urges practical steps such as factoring long‑term‑care costs into plans, considering long‑term‑care insurance, delaying Social Security where feasible, consulting financial professionals and weighing moves to lower‑cost states; policy changes to retirement rules may help long term but are unlikely to close the shortfall for many near‑term retirees.