This Is What It Costs To Retire In Washington

By Samuel Stebbins, 24/7 Wall St. - Seattle

2021-12-21

A 2019 report from the Federal Reserve found that nearly one in every four American adults have no retirement savings. During the economic crisis brought on by the COVID-19 pandemic, that share has likely grown. Despite stimulus payments and enhanced unemployment benefits, millions of Americans have reduced retirement account contributions or stopped them entirely — some have even been forced to make withdrawals. Here is what you can do if the coronavirus is threatening your retirement.

At age 65, Americans are expected to live an average of another 19.4 years, and the typical retirement-age American spends $50,220 a year. Multiply those figures, and add in a little extra for unforeseen expenses and additional financial security, and a comfortable retirement costs an estimated $1,120,408 in the United States.

The average 65 year old living in Washington can expect to spend a total of $1,245,825 in retirement — more than in all but five other states. Life expectancy at age 65 in Washington is half a year longer than the national average and the cost of living is also higher — and both contribute to greater retirement costs.

Goods and services are 8.4% more expensive in Washington than they are on average nationwide. As a result, the average annual expenditure of a retirement age state resident is about $4,200 more than it is across the U.S.

State level calculations in this story are based on the average annual expenditure of $50,220 for Americans 65 years and older in 2019, as reported in the BLS Consumer Expenditure Survey. This figure is adjusted by state to account for both cost of living and life expectancy at age 65, and then multiplied by 115% in order to reflect greater financial stability and comfort in retirement. All data in this story is from the Bureau of Labor Statistics, Bureau of Economic Analysis, and the Institute for Health Metrics and Evaluation.

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This story was originally published by 24/7 Wall St., a news organization that produces real-time business commentary and data-driven reporting for state and local markets across the country.