New CareScout Analysis Finds Seniors in 41 States and D.C. Are Projected to Outlive Their Retirement Savings

Washington offers the strongest retirement outlook, while New York seniors face the nation's largest projected financial shortfall.

A new nationwide analysis from CareScout found that older adults in 41 states and Washington, D.C., are projected to outlive their retirement savings, highlighting growing concerns about the long-term affordability of retirement in the United States.

The report estimates that the average American retiring at age 65 will receive approximately $788,000 from Social Security, savings and investments during retirement while spending nearly $897,000 on essential expenses, creating an average projected shortfall of approximately $109,000.

Among the key findings:

• Seniors in 41 states and Washington, D.C. are projected to exhaust their retirement resources before the end of retirement.

• New York ranks as the state where seniors are most likely to outlive their savings, with an estimated retirement shortfall of approximately $471,000.

• Washington ranks first for retirement financial security, with seniors projected to maintain an average surplus of approximately $276,000.

• New Hampshire, Colorado, Nebraska and Idaho round out the top five states where retirees are most likely to maintain a financial cushion throughout retirement.

The analysis also found that retirement outcomes are influenced not only by savings but by geography. Differences in housing, healthcare, transportation and everyday living costs can dramatically change how long retirement income lasts, even for households with similar nest eggs.

CareScout's researchers analyzed life expectancy at age 65, Social Security income, household net worth and state-level cost-of-living data to estimate whether retirees are likely to maintain a financial surplus or face a funding gap over the course of retirement.