Retirees in 41 States Face Average $115,000 Retirement Savings Shortfall

A significant retirement crisis looms for many Americans, with seniors in 41 states and Washington, D.C., projected to outlive their savings by an average shortfall of $115,000, and New York facing the largest deficit at $448,000 due to lower retirement incomes despite high expenses. While some states have retirement incomes exceeding expenses, the majority fall short, highlighting the importance of thorough financial preparation and realistic planning before retirement. Experts emphasize testing financial readiness by living on projected retirement income prior to retiring to avoid unpleasant surprises, as well as avoiding common pitfalls like setting too high a withdrawal rate and failing to account for lifestyle changes. Additionally, strategies such as early and consistent investing in stable, dividend-paying stocks or real estate investment trusts can help build sustainable income streams. However, retirees may also face challenges in reentering the workforce due to age discrimination. Overall, careful planning, prudent investment choices, and realistic expectations about income and expenses are critical to securing a stable retirement.