A new analysis indicates that Americans in nearly every state will fall far short in meeting their economic needs in retirement.
The State Financial Security Scorecards research project gauges the retirement readiness of future retirees in each of the fifty states and the District of Columbia in three key areas: anticipated retirement income; major retirement costs like housing and healthcare; and labor market conditions for older workers.
The research finds that the lowest ranking states include:
- California due to low potential retirement income, low workplace retirement plan access and high retiree costs.
- Florida due to high retiree costs, low wages for older workers and low workplace retirement plan access.
- South Carolina due to low potential retirement income and low labor market scores.
The highest-ranking states include Wyoming, Alaska, Minnesota and North Dakota due to their relatively strong labor markets and lower retiree costs. However, each of these states with a favorable outlook is weak in terms of potential retirement income for retirees. For example, North Dakotans have an average defined contribution retirement account balance of only $27,700 – nowhere near the level of accumulated savings required to ensure self-sufficiency through retirement.
These state scorecards are designed to serve as a tool for policymakers to identify areas of focus for state-based policy interventions that will strengthen Americans’ ability to financially prepare for retirement. The State Financial Security Scorecard project provides a two-page summary of the economic outlook for retirement security in every state. It considers trends in retirement plan participation rates in each state, evaluates average savings levels in individual retirement accounts in relation to median income and considers current poverty levels in each state.
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NIRS’ new State Financial Security Scorecards summarize the economic outlook for retirement security in every state. The two-page downloadable State Scorecards are designed to serve as a tool for policymakers to help identify potential areas of focus for state-based policy interventions to improve Americans’ retirement prospects.
Each State Scorecard gauges the relative performance of the fifty states and the District of Columbia in three key areas: anticipated retirement income; major retirement costs like housing and healthcare; and labor market conditions for older workers.
What is your state’s score? Click on a state to download a fact sheet with the details.
NOTE: Guam, Puerto Rico and the U.S. Virgin Islands are not included in this study.Download all 51 of the scorecards in one PDF here.
An explanation of the methodology underlying the scores and data points is contained in The Financial Security Scorecard: A State-by-State Analysis of Economic Pressures Facing Future Retirees.