20 States Where Retirees Are Most Likely To Outlive Their Savings by Over $100K

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.

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.

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:

1. New York: $448,000
2. Hawaii: $417,000
3. District of Columbia: $407,000
4. Alaska: $342,000
5. California: $337,000
6. Massachusetts: $294,000
7. Rhode Island: $284,000
8. Vermont: $248,000
9. Louisiana: $244,000
10. Connecticut: $193,000
11. Arkansas: $171,000
12. Mississippi: $162,000
13. Arizona: $154,000
14. New Hampshire: $149,000
15. Florida: $148,000
16. Alabama: $138,000
17. West Virginia: $136,000
18. Nevada: $134,000
19. Ohio: $134,000
20. Wisconsin: $127,000

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:

1. Washington: $146,000
2. Utah: $121,000
3. Montana: $43,000
4. Colorado: $38,000
5. Iowa: $32,000
6. Minnesota: $23,000
7. Maryland: $13,000
8. Kansas: $8,000
9. South Carolina: $2,000

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.

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.

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.