Everyone wants to know. The magic number you need to save for retirement.. But where do you live also affects your actual retirement savings?
About six years ago, we set out to answer this question by looking at the retirement savings of our 2.8 million dashboard users (indeed an unknown). This allowed us to estimate how many people’s retirement nests are broken in terms of age, race and state.
This year, in the midst of the global epidemic, in which market volatility and unemployment increased, we took a look How people’s retirement savings have changed..
Let’s dive inside.
Average retirement savings by the state
|Average Retirement Savings Balance|
|Condition||Average retirement balance.||Rank (Until 9/29/21)|
|If||503,822.||4 out of 51|
|AL||395,563.||36 out of 51|
|with||364,395.||46 out of 51|
|Of||$ 427,418.||31 out of 51|
|They||$ 452,135.||17 out of 51|
|include||449,719.||19 out of 51|
|CT||545,754.||1 out of 51 (best)|
|DC||$ 347,582.||49 out of 51|
|From||$ 454,679.||14 out of 51|
|FL||$ 428,997.||28 out of 51|
|GA||435,254.||26 out of 51|
|HI||$ 366,776.||45 out of 51|
|They||$ 465,127.||11 out of 51|
|ID||437,396.||25 out of 51|
|Of||$ 449,983.||18 out of 51|
|IN||$ 405,732.||33 out of 51|
|KS||452,703.||15 out of 51|
|KY||$ 441,757.||23 out of 51|
|Of||$ 386,908.||39 out of 51|
|M.A||$ 478,947.||8 out of 51|
|MD||$ 485,501.||7 out of 51|
|ME||403,751.||51 out of 35|
|ME||$ 439,568.||24 out of 51|
|MN||$ 470,549.||9 out of 51|
|MO||410,656.||32 out of 51|
|Ms.||$ 347,884.||48 out of 51|
|MT||$ 390,768.||38 out of 51|
|NC||$ 464,104.||12 out of 51|
|N.D.||319,609.||50 out of 51.|
|be born||404,650.||34 out of 51|
|NH||512,781.||3 out of 51|
|NJ||$ 514,245.||2 out of 51|
|NM||$ 428,041.||29 out of 51|
|NV||$ 379,728.||42 out of 51|
|New||$ 382,027.||40 out of 51|
|Oh||427,462.||30 out of 51|
|Okay fine||$ 361,366.||47 out of 51|
|Or||$ 452,558.||16 out of 51|
|PA||$ 462,075.||13 out of 51|
|RI||$ 392,622.||37 out of 51|
|SC||$ 449,486.||21 out of 51|
|SD||$ 449,628.||20 out of 51|
|TN||376,476.||43 out of 51|
|TX||$ 434,328.||27 out of 51|
|Outside||$ 315,160.||51 out of 51 (bad)|
|Will||$ 492,965.||6 out of 51|
|VT||$ 494,569.||5 out of 51|
|W.A.||$ 469,987.||10 out of 51|
|WI||448,975.||22 out of 51|
|WV||$ 370,532.||44 out of 51|
|You||$ 381,133.||41 out of 51|
There are certain areas that are most prominent in terms of top rankings. If you compare the east coast with the west coast, it is clear that the east coast is more likely to hit its retirement nest eggs. Connecticut Top of the list this year with an average retirement savings of $ 545,754. The seven east coast states are also in the top five: New Jersey (Second – 14 514,245), New Hampshire (3rd– $$ 512,781), and. Vermont (5th – $ 494,569).
|Top 5 2021.|
The only state that represents the western region in the top 5, Alaska It ranks fourth with an average balance of 3 503,822.
As far as the bottom of the list is concerned, the states this year are: Utah (First down – 315,160), North Dakota (Second down – 9 319,609), Washington DC (Third down – 347,582), Oklahoma (Fourth down – 1 361,366) and. Mississippi (Fifth down – 7 347,884).
|Down 5 2021.|
|Okay fine||$ 361,366.|
Why do some states have higher status?
Given the average retirement savings, there are many factors at play. It should be noted that it may be unfair to just look at state-to-state breakdowns when you think of the different tax burdens and housing matrix prices that vary between states. In our analysis, we did not specifically look at these other factors as a major cause. In our assumption, it is probably understandable why states like Alaska are in the top 5 list – especially since Alaska is a state known for favorable tax laws compared to states like California. See the tax burden chart below.
The high cost of living can be a factor in some states not being in the top 5. That’s why Hawaii, the District of Columbia and New York to name a few, because cities in those states have the highest cost of housing, according to US Bureau of Labor Statistics.. According to its 2021 rating, Here are the top 5 states. With high cost of living: Hawaii, California, New York, Oregon and Massachusetts.
|Rank||Condition||Total tax burden.||Property tax burden.||Individual income tax burden.||Total sales and excise tax burden.|
according to a 2020 report from Statista., New Jersey The country is known for having a proportion of millionaire households (9.76%). So there is no question that they are in the top five for the highest average retirement balance. Alaska It is one of the most tax-friendly states in the country, with no state income tax and no state sales tax. Second on our list for the highest average retirement balance, New Hampshire It also has many tax-friendly benefits. Residents are not required to pay state income tax on income from social security benefits, pensions, distribution from retirement accounts, or classified retirement jobs.
|Rank||Condition||Percentage of millionaire households (up to 11/2020)|
|6.||District of Columbia||9.12|
Also, this is not surprising. Alaska and New Hampshire have recently topped our list of best places to retire. In 2021.
How much do you need to retire comfortably in each state?
Unfortunately, there is no answer to how much you will need to retire comfortably, no matter what state you live in. Your desired retirement lifestyle.
One thing to consider when determining how much you will need to retire is your state’s tax burden. We covered that a while ago, but there are many types of taxes that vary by state and can really affect your ability to maintain your desired lifestyle. Some of these include property taxes, income taxes and inheritance taxes. For example, if the expected inheritance is part of your retirement plan, you should know if your state has estate or inheritance tax.
There are various ways to calculate how much you may need to spend or withdraw from your portfolio. There is a general “4% rule”. If you follow this rule, you withdraw 4 withdrawals from your portfolio in the first year of retirement and then you withdraw the same amount of dollars adjusted for inflation annually for the next 30 years. ۔ The idea is that if you follow this principle, you minimize the chances of running out of money in retirement. While this rule is a good starting point, it has been hotly debated since its inception. Some argue that it is too conservative. Others say today’s low-interest environment and long-term expectations make it much more dangerous. Meanwhile, your financial future hangs in the balance. If the principle is too conservative, then you have unnecessarily limited your retirement lifestyle. If the rule is too risky, you may run out of money when you need it most.
So a good way to get a personal plan is to use personal capital like free. Retirement Planner. Retirement planners will allow you to enter specific information that is personal to you (such as large expense plans, when you want to take Social Security, At what age do you plan to retire?, Etc.) and will run thousands of replicas based on your current portfolio to give you a one percent chance of retirement success. Access Retirement Planner by signing up. Free personal finance tools..
In addition to the average retirement balance for each state, you may be wondering how your retirement balance compares to the average balance of each of the different races. As you can see from the table below, it is important to keep in mind that everyone has different financial goals and plans. You have to be focused. Controlling the controllable And Develop a plan that fits your long-term strategy..
|By Generation (until 9/29/21)|
|Age group||Total users.||Average
|General Z.||121,489.||$ 38,633.||12,016.|
|General X||375,718.||$ 605,526.||$ 303,663.|
|Baby Boomers.||191,648.||$ 1,076,208.||$ 587,943.|
|Other / No age data.||304,134.||288,592.||$ 64,828.|
The keys to a successful retirement are visibility in your finances and having an objective person in your corner who can help you make decisions in your best financial interest.
Is there Personal capital Expert financial guidance can help with free financial tools to monitor your financial accounts and investments. To see how personal capital can help you manage your retirement plan in any environment, Sign up for our free financial tools to get started..
About our data: To obtain this data, Personal Capital analyzed the retirement accounts of Dashboard users on an anonymous basis. The data presented represents the average (average) balance of retirement accounts linked by state-broken Personal Capital Dashboard users as of 4/3/2021. Location data was assumed based on the user’s IP address. Some accounts, such as test accounts, large outliers, duplicate special accounts, and retirement accounts such as retail checking and savings accounts were excluded from this analysis.
All charts, figures and graphs are for illustrative purposes only. Read the full disclosure