President Trump signs TrumpIRA order expanding access to retirement savings
President Trump signed an executive order creating TrumpIRA.gov, which can be used by workers whose employers do not offer a 401(k) plan to enroll in a retirement plan.
American retirees are likely to outlive their savings in 41 states, according to a new report.
Studies show that Americans fear running out of money in retirement more than they fear death itself. People are living longer, which means they are living longer in retirement and their retirement costs are increasing.
A new report from long-term care network CareScout finds that the average American age 65 faces a retirement savings gap of $109,000. It’s the difference between the income you can expect from Social Security, savings, and other sources and how much you can expect to spend on everyday expenses.
The report is based on state-level estimates such as life expectancy at age 65 (16 to 20 years, depending on state), average retirement benefits, median net worth, and expected retirement costs.
Retirees typically rely on Social Security for many of their expenses, along with their retirement savings. Social Security benefits never run out, but savings can. That’s why many Americans say they need $1 million or more saved for retirement, which could take 30 or 40 years.
Not surprisingly, in states with notoriously high costs of living, such as New York, California, Alaska, and Massachusetts, seniors are more likely to outlive their savings.
In contrast, retirees are in a better economic position in states such as Minnesota, Utah, and Colorado, where residents enjoy relatively manageable and high retirement incomes and expenses.
The purpose of the report is to encourage Americans to plan for their retirement, said CareScout CEO Sameer Shah. AARP research shows that many older Americans don’t work with a professional retirement planner.
“Americans are not ready for retirement,” Shah said. “People don’t think about how much money they’ll need in retirement.”
Where are retirees likely to outlive their savings?
Here are the 10 states, including the District of Columbia, where seniors are most likely to outlive their savings.
new york. The average senior can expect to have approximately $1.18 million in expenses and $712,000 in income during retirement. Projected shortfall: $471,000.
District of Columbia. Retirement spending averages $1.22 million and income averages $790,000. Projected shortfall: $432,000.
California. Seniors can expect to earn $943,000 and spend $1.34 million in retirement. Projected shortfall: $395,000.
Alaska. Retirement income averages $769,000 and expenses average $1.12 million. Projected shortfall: $350,000.
New Mexico. The retiree’s income would be $555,000 and expenses would be $832,000. Projected shortfall: $277,000.
Louisiana. Retirement income averages $531,000 and expenses average $772,000. Projected shortfall: $241,000.
Arkansas. A retiree can expect to have expenses of $727,000 and income of $490,000. Projected shortfall: $237,000.
Vermont. A retiree can expect to earn $819,000 and spend $1.05 million in retirement. Projected shortfall: $232,000.
Kentucky. Seniors can expect to spend $730,000 and earn $521,000 in retirement. Expected shortfall: $209,000.
Rhode Island. Seniors can expect to earn $819,000 and spend $1.02 million in retirement. The shortfall is expected to be $200,000.
Massachusetts, Arizona, Mississippi, Oklahoma, Alabama, South Carolina, Nevada, Missouri, West Virginia, Ohio, Oregon, North Carolina, Texas, Connecticut, Wisconsin, Delaware, Indiana, Georgia, Hawaii, South Dakota, Kansas, North Dakota, Michigan, Virginia, Maine, Wyoming, Iowa, Pennsylvania, Tennessee, Florida, Illinois, and New Jersey.
9 states where retirees can expect “surplus money”
According to the CareScout report, there are only nine states where retirees can expect to have a financial surplus in retirement through some combination of cutting expenses and increasing income.
The “surplus” status of retirement benefits is as follows:
Washington. Retirees can expect to earn an average of $1.3 million and spend $1.02 million in retirement. Projected surplus: $276,000.
New Hampshire. The average senior can expect to have $1.24 million in income and $1 million in expenses during retirement. Projected surplus: $240,000.
Colorado. Retirement income averages $1.14 million and expenses average $949,000. Projected surplus: $188,000.
Nebraska. The retiree’s income would be $969,000 and expenses would be $824,000. Projected surplus: $145,000.
Idaho. Average retirement costs are $896,000, average income is $1 million, and expected surplus: $112,000.
Minnesota.Retirement spending averages $871,000 and income averages $980,000. Projected surplus: $109,000.
Utah.Seniors can expect to earn $976,000 and spend $897,000 in retirement. Projected surplus: $79,000.
Maryland.Seniors can expect to earn $1.08 million and spend $1.06 during retirement. Projected surplus: $21,000.
Montana.Retirement spending averages $878,000 and income averages $897,000. Projected surplus: $19,000.
How to avoid outliving your retirement savings
Don’t want to outlive your savings? Here are some tips from the experts.
Don’t underestimate your lifespan
The average life expectancy in America is approximately 79 years. But by the time you retire, your life expectancy is even longer. For example, a 70-year-old woman can expect to live to 87 years.
Many older Americans do not know how long their retirement will last, or in other words, how long they will live.
Longevity literacy is important for retirement planning. If you budget for retirement assuming you’ll live to age 75, and you live to age 95, you’ll probably run out of money.
Make the most of your retirement savings
One way to ensure you’re building your retirement savings is to actively contribute to your workplace retirement account.
The most successful retirement savers typically start saving early, contribute at least 10% of their income to a 401(k)-type account, and save continuously until retirement.
Also, avoid using your retirement savings to cover household expenses. Instead, open an emergency savings account.
Claim Social Security Later
The longer you delay filing your Social Security claim, the higher your monthly benefits will be.
Based on the longevity numbers above, it’s more common to claim Social Security later in life if you can afford to wait. Ideally, you would wait until age 70, when your monthly benefit is at its maximum.
USA TODAY explained the math behind that rule of thumb in a 2025 article.
