Here’s a scary (but sadly, unsurprising) fact—one-third of Americans lack any retirement savings at all.
For those who have diligently saved, the average 401(k) account balance hovers around $90,000, far short of the million-dollar minimum most financial advisors recommend to ensure a successful retirement.
So where can hardworking 401(k) participants stretch their savings furthest, and which states should be avoided at all costs?
GOBankingRates surveyed all 50 states plus the District of Columbia to determine not only what’s affordable, but where clients can actually maximize your retirement savings and live comfortably.
Based off of taxes, living expenses, banking rates, health insurance costs and Social Security payments, here is the best and worst of what America has to offer.
10 best States for Retiring ‘Rich’
- Delaware
- Michigan
- Indiana
- Maryland
- Florida
- New Jersey
- Pennsylvania
- Mississippi
- Ohio
- Georgia
10 Worst States for Retiring ‘Rich’
- Hawaii
- Vermont
- North Dakota
- Montana
- New Mexico
- Alaska
- Colorado
- West Virginia
- Maine
- Nebraska
Other Fun (or Not-So-Fun) Facts to Consider, According to GOBankingRates
- The 10 best states to retire rich lie east of the Mississippi River
- New Jersey pays the most Social Security money to retirees, with an average payout of $1,452.47 per month
- 8 of the 10 states with the lowest average house listing are located in the eastern portion of the country
- Even with the lowest property tax in the nation, Hawaii ranks as the worst state to retire rich due to its extremely high average home listing price and cost of living index
- Alaska’s average health insurance premiums top the most expensive list at a whopping $719
- 7 of the 10 worst states to retire rich are located in the West/Midwest
- Western states Montana, Oregon and New Mexico spend an average $3,733.83 less on Medicare for their citizens per year than eastern states like New Jersey, Maryland and Connecticut
“While warmer places like Arizona tend to be popular destinations to retire, our study found that states located on the east coast in general offer retirees the most bang for their buck,” Kristen Bonner, lead researcher on the study, said in a statement. “We found that these states have lower home prices on average, as well as relatively low health insurance premiums and Social Security benefits among the highest in the country.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
