Retirement in the US.
- A recent study by personal finance platform GoBankingRates found the most realistic retirement age in every state in the US.
- To gather this data, the study assumed that workers started work when they were 22 and followed the 50-30-20 budget rule - this means 20% of their personal income was dedicated to savings.
- According to the study, realistic retirement ages in each state range from as young as 53 to as old as 74.
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Depending on where you live, you may be able to retire as young as 53 - or have to keep working until you're 74.
A recent study released by Cameron Huddleston of GoBankingRates found the most realistic retirement age in every state in the US. To start, GoBankingRates found the median income by age in each state. To determine how much savings workers needed across the country to retire comfortably, GoBankingRates used data from its previous study on exactly how much savings you need to retire in every state.
To determine the most realistic retirement age, GoBankingRates assumed that workers started work when they were 22 and followed the 50-30-20 budget rule - this means 20% of their personal income was dedicated to savings. The study also assumed that of the 20% that went into savings, 14% was put in a typical savings account and 6% was put into a 401(k) with a 50% employer match (up to 3%). According to the report, the average annual return on investments in the 401(k) was assumed to be 5%.
Using these assumptions, GoBankingRates found how much workers making a median income in each state could have saved at ages 24, 34, 44 and 58 to 77. When the target amount of savings needed to retire in a given state was reached or exceeded, the following year was declared the most realistic age of retirement for the typical worker.
Keep reading to find out the most realistic retirement age in each state, according to GoBankingRates.