Donald Trump defends Social Security on its 90th anniversary
President Trump marked Social Security’s 90th anniversary and pledged to protect and expand benefits for seniors.
Americans might want to rethink where they retire if they’re concerned about running out of money, though there aren’t a lot of promising destinations.
Most states, including Arizona and other popular retirement spots such as Florida, Texas and Nevada, are among the places where the typical retiree might have trouble making ends meet, according to a new report by the Seniorly Resource Center, which projects savings or income gaps in 41 states and the District of Columbia.
The study estimates the typical American at age 65 can expect about $762,000 in Social Security benefits and other retirement income over his or her remaining lifespan of about 18.2 years. But that compares with $877,000 in retirement costs, leaving an average shortfall of $115,000.
Seniorly projects a looming “retirement crisis,” pretty much nationwide.
Retirement shortfalls projected in most states
Arizona ranks 39th best for retirement finances. Seniorly estimates the typical 65-year-old here will live 18.1 more years on average and, over that time, will receive $787,000 in cumulative income against $941,000 in expenses for an overall gap of $154,000.
Seniorly examined household networths to help estimate retirement income in addition to Social Security payments.
The biggest savings shortfalls are in New York ($448,000), Hawaii ($417,000) and Washington, D.C. ($407,000). California isn’t much better, with a $337,000 average projected gap.
Among the few states where retirees can expect to make their money last: top-ranked Washington, with an estimated $146,000 surplus, along with Utah ($121,000 surplus) and Montana ($43,000).
Like Arizona, several other popular retirement states didn’t fare well in the study, including Texas ($113,000 average shortfall), Nevada ($134,000 shortfall) and Florida ($148,000 shortfall).
Tips for stretching retirement dollars
Retirees and pre-retirees often can boost their income in several ways. These include delaying Social Security benefits, working a bit longer than planned, taking on side gigs in retirement and investing a bit more aggressively over the years in a mix of stock and bond funds, rather than relying exclusively on more-conservative certificates of deposit and money-market accounts.
Meanwhile, downsizing and relocating to more affordable areas can help trim costs.
MIT has developed an easy-to-use calculator that can estimate costs in states, counties and larger urban areas. The calculator is designed to analyze minimum wages compared to living wages for workers, but it also can prove helpful for estimating expenses for retirees in various areas.
For example, the calculator pegs living costs in Tucson and Pinal County to be roughly one-fifth less in some cases than in metro Phoenix.
The Seniorly analysis also took life expectancies into account. This too affects the retirement-shortfall calculation, as people who live longer need to stretch their dollars further.
For example, Hawaiians can expect to live another 20.6 years in retirement after age 65, but it’s only 16.8 years in Louisiana and 16.1 years in Mississippi.
Reach the writer at russ.wiles@arizonarepublic.com.