10 states the least prepared for retirement
No wonder retirees tend to cluster in states with low costs of living.
Financial experts often recommend that retirees aim to live off of 70 to 80 percent of their pre-retirement salary. But that's a benchmark that residents in only one state—Nevada—and Washington, D.C., are surpassing, according to a new study from Interest.com based on Census Bureau data.
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Nationwide, looking at median incomes for working Americans and retirees, residents age 65 and older have a wage replacement ratio of 59.63 percent. They're living on an average income of $37,847. That's a tight budget, especially given higher costs in retirement for health care, said Mike Sante, managing editor of Interest.com. "Some of them are struggling with some of the basic necessities of life," he said.
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These 10 states are the least prepared when it comes to retirees having enough savings to replace their pre-retirement income.
—By CNBC's Kelli B. Grant
Posted 9 Oct. 2014
Rhode Island—No. 10
- Percentage of households 65-plus: 23.9 percent
- Median income (age 65-plus): $39,577
- Income replacement rate: 55.15 percent
- Change from 2011: 6.95 percent
New York—No. 9
- Percentage of households 65-plus: 23.7 percent
- Median income (age 65-plus): $37,769
- Income replacement rate: 54.98 percent
- Change from 2011: 2.5 percent
Pennsylvania —No. 8
- Percentage of households 65-plus: 26.2 percent
- Median income (age 65-plus): $35,009
- Income replacement rate: 54.36 percent
- Change from 2011: 2.15 percent
New Hampshire—No. 7
- Percentage of households 65-plus: 23.5 percent
- Median income (age 65-plus): $42,406
- Income replacement rate: 54.26 percent
- Change from 2011: 3.59 percent
Wisconsin —No. 6
- Percentage of households 65-plus: 23.6 percent
- Median income (age 65-plus): $34,721
- Income replacement rate: 53.78 percent
- Change from 2011: 1.16 percent
New Jersey—No. 5
- Percentage of households 65-plus: 24 percent
- Median income (age 65-plus): $45,092
- Income replacement rate: 52.57 percent
- Change from 2011: 3.04 percent
Connecticut—No. 4
- Percentage of households 65-plus: 24.7 percent
- Median income (age 65-plus): $44,240
- Income replacement rate: 52.2 percent
- Change from 2011: 1.31 percent
Minnesota—No. 3
- Percentage of households 65-plus: 22.4 percent
- Median income (age 65-plus): $38,531
- Income replacement rate: 51.87 percent
- Change from 2011: 0.68 percent
North Dakota—No. 2
- Percentage of households 65-plus: 22.1 percent
- Median income (age 65-plus): $35,293
- Income replacement rate: 48.99 percent
- Change from 2011: 0.82 percent
Massachusetts—No. 1
- Percentage of households 65-plus: 23.9 percent
- Median income (age 65-plus): $40,020
- Income replacement rate: 48.74 percent
- Change from 2011: 3.53 percent