20 States Where Retirees Are Most Likely To Outlive Their Savings by Over $100K Adam PalascianoOctober 20, 2025 at 1:20 AM 4 Planning a strong retirement plan is more important than ever as Americans live longer and costs continue to rise.
- - 20 States Where Retirees Are Most Likely To Outlive Their Savings by Over $100K
Adam PalascianoOctober 20, 2025 at 1:20 AM
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Planning a strong retirement plan is more important than ever as Americans live longer and costs continue to rise. A new study from Seniorly shows that many retirees risk exhausting their savings before the end of their lives. In some states, the average retiree could fall short by hundreds of thousands of dollars.
Knowing where these gaps exist can help you better prepare for your financial future. Here's what the data reveals about the states where seniors may be most at risk.
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How the study worked
Seniorly examined how long retirement savings would realistically last by comparing life expectancy, average retirement income, and the cost of living in each state. Their researchers used reliable data sources, including the Social Security Administration (SSA), the Centers for Disease Control and Prevention (CDC), and the U.S. Census Bureau, to project outcomes. The analysis focused on the 65-year-old retiree, estimating their total income, as well as living costs over a typical retirement span.
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The 20 states where seniors are most likely to outlive their savings
Some parts of the country pose a much greater financial challenge for retirees. For example, New York ranks worst, where seniors will need around $1.12 million to cover around 20 years of retirement. However, New York retirees are expected to bring in only $670,000 from Social Security, savings, and other income sources, leaving a massive gap of around $448,000. Hawaii, the District of Columbia, Alaska, and California follow closely behind, each with deficits above $330,000.
Here are the 20 states with the largest projected shortfalls, ranked by estimated deficit:
New York: $448,000
Hawaii: $417,000
District of Columbia: $407,000
Alaska: $342,000
California: $337,000
Massachusetts: $294,000
Rhode Island: $284,000
Vermont: $248,000
Louisiana: $244,000
Connecticut: $193,000
Arkansas: $171,000
Mississippi: $162,000
Arizona: $154,000
New Hampshire: $149,000
Florida: $148,000
Alabama: $138,000
West Virginia: $136,000
Nevada: $134,000
Ohio: $134,000
Wisconsin: $127,000
The nine states where retirement savings last the longest
While retirees in the majority of states will face a shortfall, not every state paints a dire picture. Washington, Utah, Montana, and Colorado top the list of places where retirees can expect to finish with extra money in hand. In Washington, for example, seniors are projected to need about $985,000 but bring in $1.13 million in retirement across all income sources, leaving a surplus of around $145,000. Iowa, Minnesota, and Maryland aren't too far behind, each with a surplus above $12,000.
Here are the nine states where savings are expected to last the longest:
Washington: $146,000
Utah: $121,000
Montana: $43,000
Colorado: $38,000
Iowa: $32,000
Minnesota: $23,000
Maryland: $13,000
Kansas: $8,000
South Carolina: $2,000
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Why do retirement savings last longer only in certain states?
The study highlights that retirement outcomes depend largely on three things: income, expenses, and projected lifespan beyond age 65. States where retirees tend to have higher incomes paired with lower living costs and a moderate life expectancy create better odds of financial security.
As an example, New York's extremely high costs overwhelm even its above-average income levels, while Washington's relatively affordable expenses and strong retirement income help explain its top ranking.
How to determine if you've saved enough for retirement
To see whether your savings are on track, first estimate your expected income from Social Security, investments, dividends, pensions, and other assets.
Then, compare this to a realistic budget for your housing, food, health care, and other expenses in retirement. Finally, factor in the cost of living in your area and the possibility of living 20 to 30 years or longer in retirement to avoid underestimating your needs.
Bottom line
Seniorly's analysis shows that in 27 states, retirees may face a savings shortfall of more than $100,000, and in the worst cases, deficits can exceed $400,000. These numbers highlight just how much location and cost of living can influence financial security later in life.
If you are within a few years of retirement, now is the time to reassess your finances, explore ways to increase income, and adjust spending expectations. The decisions you make today can determine whether you'll set yourself up for retirement with confidence or face difficult trade-offs down the road.
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Source: "AOL Money"
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