Full Breakdown
Seniors in 41 States Face Projected Retirement Savings Gap, Study Finds
6/26/2026, 9:30:37 PM
Study Reveals Widespread Retirement Savings Shortfall
A June 2026 analysis by CareScout Analytics indicates that seniors in 41 U.S. states and the District of Columbia are expected to outlive their retirement income and savings. The report calculates an average shortfall of $109,000 for a typical 65-year-old retiree, defined as the gap between projected lifetime expenses and the combined expected income from Social Security, savings and investments.
Longevity and Rising Retirement Costs
The shortfall is driven by two intersecting trends. First, Americans are living longer; overall life expectancy is about 79 years, and a 70-year-old woman can expect to reach 87 years. Longer lifespans extend the retirement horizon, increasing the total amount needed for daily living, health care and long-term care. Second, the Federal Reserve reports that 8 % of non-retired adults have already tapped retirement accounts to cover non-retirement expenses, highlighting the pressure on savings.
State-Level Projections
States with the Largest Projected Gaps
| State (or DC) | Projected Income | Projected Expenses | Shortfall |
|---|---|---|---|
| New York | $712 k | $1.18 M | $471 k |
| District of Columbia | $790 k | $1.22 M | $432 k |
| California | $943 k | $1.34 M | $395 k |
| Alaska | $769 k | $1.12 M | $350 k |
| New Mexico | $555 k | $832 k | $277 k |
| Louisiana | $531 k | $772 k | $241 k |
| Arkansas | $490 k | $727 k | $237 k |
| Vermont | $819 k | $1.05 M | $232 k |
| Kentucky | $521 k | $730 k | $209 k |
| Rhode Island | $819 k | $1.02 M | $200 k |
States Projected to Yield a Surplus
Washington, New Hampshire, Colorado, Nebraska, Idaho, Minnesota, Utah, Maryland, and Montana each show a projected surplus ranging from $19,000 (Montana) to $276,000 (Washington).
Financial Implications and Planning Recommendations
CareScout and retirement experts advise several strategies to mitigate the gap:
- Maximize savings – contribute at least 10 % of earnings to a 401(k) or similar plan and avoid withdrawing funds for non-retirement expenses.
- Delay Social Security – waiting until age 70 maximizes monthly benefits, reducing the risk of outliving assets.
- Consider location – because assisted-living and nursing-home costs vary widely, retirees should factor long-term-care expenses into relocation decisions, similar to tax considerations.
- Secure long-term-care insurance – purchasing coverage during peak earning years can protect assets and preserve inheritances.
- Build an emergency fund – separate from retirement accounts to cover unexpected household costs.
Official Statements from CareScout
CareScout CEO Samir Shah emphasizes that many Americans have not incorporated realistic longevity assumptions into their retirement plans. He notes that the study’s goal is to encourage proactive, location-aware financial planning and to highlight the importance of long-term-care cost awareness.
Verbatim Quotes
Gaps and Uncertainties
The study’s reliability scores (? 41 % for the USA Today report and 46 % for the KATU summary) indicate moderate confidence in the estimates. No opposing analyses were presented in the source material, leaving the findings without direct counter-points. Further research could refine state-level cost projections and assess the impact of emerging retirement policy changes.
