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The Top 5 States Where Seniors are Most Prepared for Retirement
SmartAsset - copyright 2018
Ellen Chang | MAR 7, 2019
The key to a financially secure retirement is planning. Whether with the steadying hand of a financial advisor, or strategizing on your own, planning your retirement takes time and can be difficult.
We examined all 50 states and Washington, D.C. to rank them on their retirement preparedness.
Specifically, we look at average retirement income, percent of seniors with retirement income, senior homeownership rate, percent of seniors who are housing cost burdened, the senior poverty rate, percent of seniors using food stamps and cost of living.
Top 5 States Where Seniors are Most Prepared for Retirement
1. Utah
Combining average retirement income with Social Security income, the average retired senior household in Utah has about $51,105 in retirement income. Additionally, 86% of seniors live in a home they own, keeping long-term housing costs relatively low. In total, Utah ranks in the top 10 for five of our seven metrics.
2. Delaware
More than 58% of senior households in Delaware have some retirement income saved up. This state also has the fifth-highest homeownership rate for seniors. Delaware ranks fifth for senior poverty rate, with a senior poverty rate of only 6.9%.
3. Indiana
Indiana has one of the lowest average incomes for prospective retirees, but also a low cost of living. Only 22% of Indiana seniors are housing-cost burdened. Indiana also ranks in the top 11 for senior homeownership rate. We rank it as the 10th most affordable state in the country.
4. (tie) Michigan
According to Census Bureau data, 57% of Michigan senior households have some retirement income. Other notable scores include the 11th-highest homeownership rate for seniors and the 18th-lowest senior poverty rate.
4. (tie) Virginia
The average Virginia senior with retirement income pulls in about $52,700 per year. Census Bureau data also reveals just under 56% of senior households have some chunk of retirement income saved up. This state has the 13th-lowest senior poverty rate and the 12th-lowest rate of seniors using food stamps.
The Best Way to Make Sure You’re Prepared for Retirement
Regardless of where your retirement savings stand right now, one of the best ways to ensure you’re prepared for retirement is by working with a fiduciary financial advisor, who can offer objective advice based on your specific financial situation and goals.
While the value of working with a financial advisor varies by person and advisors are legally prohibited from promising returns, research suggests average additional investment returns can range from 1.5% to 4% each year.
Voya Financial found that 79% of people who use an advisor said they “know how to pursue achieving their retirement goals.” The study also found that 59% of those who use an advisor have calculated how much they need to retire, while 52% established a formal retirement investment plan.
Chances are, there are several highly qualified financial advisors in your town. However, it can seem daunting to choose one.
This new tool makes it easy to find the right financial advisor for you. Now you can get matched with up to three local fiduciary investment advisors that have passed a rigorous screening process.
Follow These Steps for Better Financial Future
1. Simply enter your ZIP code below.
2. After you enter your ZIP code and answer a few questions about your financial goals, you can compare up to three top advisors local to you and decide who to work with.
3. Enjoy a better financial future!
SmartAsset - copyright 2018
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