The reserve fund that pays Social Security benefits to retired Americans is expected to be depleted in 2023, at which time retirees will face a 23% benefit cut without Congressional action, the Social Security Board of Trustees reported earlier this month.
Retirement experts says this outcome — never mind the program going away entirely — is nearly impossible, but surveys have repeatedly shown that younger investors are pessimistic about Social Security's future.
Worried clients might find some comfort in gaming out what a retirement without Social Security might look like — and where they could move if they wanted to retire comfortably on the cheap. They also might be reassured to know that working longer can have a big impact on the amount of savings needed to retire.
A new GOBankingRates study crunched some numbers to help with these projections. Researchers compiled retirement costs across all 50 states that assume a life expectancy of 80. The study defined a comfortable retirement as having double the funds needed to meet the cost of living.
Researchers sourced cost-of-living data for one person from government data banks, collecting all data on Feb. 21. Using the 50/30/20 rule, which states that needs should not exceed 50% of the household income, they doubled total cost of living to find the income needed to live comfortably.
See the gallery for the 12 states where retirees need to set aside the least amount of money for a comfortable retirement, according to GOBankingRates.
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