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CRASH PROOF RETIREMENT SHOW: RETIREMENT INCOME BY STATE
On today’s Crash Proof Retirement Show, Phil Cannella and Joann Small discussed a recent study from Interest.com that suggest by and large, retirees are coming up short in term of replacing their working-life income.
The study looked at the median incomes of people age 65 and over, and evaluated how much income those households are enjoying annually in comparison to pre-retirement income levels.
A common rule of thumb holds that 70% of pre-retirement income is necessary to enjoy a comfortable retirement. If that’s true, retirees in Nevada have a leg up on the rest of the nation, as Nevada was the lone state to show a median income level that reached that 70% level (70.8%, to be exact.)
The good news is overall, the numbers are improving—the national average for replacement income is 59.6%, up from 57.4% in the 2011 study. But at 10+ percentage points below standard, the need for Americans to plan now to enjoy a comfortable retirement is apparent.
How does your state stack up in terms of replacement income level? Here’s a closer look at the top 10—and bottom 10—states in this recent study.
BEST STATES FOR MAINTAINING PRE-RETIREMENT INCOME (by percentage):
- Nevada (70.8%)
- Hawaii (69.1%)
- Arizona (68.2%)
- Mississippi (68.1%)
- Florida (67.8%)
- New Mexico (67.8%)
- South Carolina (67.5%)
- Arkansas (66.9%)
- Tennessee (66.1%)
- Alaska (65.7%)
WORST STATES FOR MAINTAINING PRE-RETIREMENT INCOME:
41. Illinois (55.5%)
42. Rhode Island (55.2%)
43. New York (55.0%)
44. Pennsylvania (54.4%)
45. New Hampshire (54.3%)
46. Wisconsin (53.8%)
47. New Jersey (52.6%)
48. Connecticut (52.2%)
49. Minnesota (51.9%)
50. Massachusetts (48.7%)
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