Indira Venkat serves as the Senior Vice President of Research at AARP, she joins LiveNOW from FOX to discuss a recent survey that found more than 20% of adults ages 50 and older have no retirement savings. Venkat explains how Americans are worried about covering basic expenses.
From expensive Hawaiian beaches to the low-cost plains of Oklahoma, the amount of money a person needs to save to comfortably retire can vary by over a million dollars.
Retirement Living calculated the estimated savings needed to retire comfortably in each state, analyzing multiple financial and demographic factors.
Oklahoma residents require least amount of savings to retire comfortably
The data found that Oklahoma residents required the least amount of savings to retire comfortably at $729K.
This was followed by Michigan and Kansas.
In this photo illustration, a Social Security card sits alongside checks from the U.S. Treasury on October 14, 2021 in Washington, DC. (Credit: Kevin Dietsch/Getty Images)
States with a low cost of living index and high social security payouts were some of the best options. Six of the top 10 states with the lowest savings needed to retire were in the Midwest, suggesting residents can save money away from the coasts.
States where you need the least savings to retire Oklahoma, $729,145Michigan, $752,483Kansas, $754,906Missouri, $761,753Alabama, $761,856Iowa, $771,121Indiana, $775,348Mississippi, $784,235Tennessee, $786,756West Virginia, $788,891 Hawaii residents require most savings to retire comfortablyÂ
The data also found that Hawaii residents required the most amount of savings to retire comfortably, at $2.17 million – three times more than Oklahoma residents.Â
This was followed by Massachusetts and California.
West Coast and Atlantic Coast states were some of the most expensive to retire in, accounting for 13 of the top 15 most expensive states. While these states may offer some perks to retirees, residents will also have to contend with the high cost of living.
States where you need the most savings to retire Hawaii, $2,169,896Massachusetts, $1,585,705California, $1,576,678Alaska, $1,362,126New York, $1,296,494Maine, $1,161,722Vermont, $1,123,251Oregon, $1,119,995Maryland, $1,114,225Arizona, $1,108,264
See the full report here.
Future of Social Security
Dig deeper:
The future of Social Security is uncertain amid soaring health care costs and new legislation impacting benefits in the government program. Â
AÂ report released on June 18 revealed that Social Security funds will be depleted by 2034 after it was initially believed there would be enough money to provide full benefits until 2035.Â
RELATED: How much money you need to retire in your state – without Social Security
Another study published last month by Bankrate found that West Virginia and Mississippi required the least amount of savings to retire comfortably, while Hawaii and California required the most.
Tips on saving for retirement
What you can do:
Retirement Living offered some practical tips to help stay on track, including starting early and staying consistent, maximizing retirement accounts, considering a Gold IRA, keeping an emergency fund, preparing for health insurance costs, opening a Health Savings Account (HSA) and paying off high-interest debt.
As mentioned, every state and local region has its own unique cost of living. Retirement Livings suggests considering moving to a state with a lower cost of living or downsizing to reduce housing costs, taxes and maintenance expenses.
While not always possible, adults can wait until age 70 to claim their social security benefits to receive the maximum benefit and increase monthly payments.
The Source: Retirement Living adjusted the national average annual spending for retirees using each state’s cost-of-living index. Then they calculated each state’s average Social Security benefit and subtracted it from the adjusted spending figure to determine how much retirees needed to cover with their savings. Finally, they divided the gap using the 4% withdrawal rule – a guideline suggesting that retirees can safely withdraw 4% of their retirement savings in the first year of retirement, and then adjust that amount annually for inflation in subsequent years – to estimate the total savings required. This story was reported from Los Angeles. Previous FOX Local reporting contributed.