Chart of the Week: Can You Afford Retirement?
According to an Interest.com study of 2013 Census Bureau data, that’s only 60% of the annual income of 45- to 64-year-olds.
But depending on where you live, that 70% benchmark could be even harder to reach than you thought.
This week’s chart looks at the income replacement rate for each state. The rate is calculated by dividing the median household incomes for residents aged 65 and older by the incomes of 45- to 64-year-olds for each state.
The only state to hit the 70% income replacement rate benchmark is Nevada.
With a high cost of living to blame, Massachusetts is the worst state for retirement income with only a 48.7% income replacement rate.
When retirees in 49 out of 50 states are struggling to afford retirement, it can only mean one thing: working Americans aren’t planning ahead enough for retirement.
The Oxford Club’s Chief Income Strategist Marc Lichtenfeld has made it his life’s mission to change this fact for as many people as possible. Learn more about how to have the retirement of your dreams and sign up for his free e-letter by clicking here.
What are your thoughts on retirement where you live? Join the conversation by commenting below.