A new analysis from Seniorly finds retirees in 41 states plus Washington, D.C., are projected to run out of money before the end of retirement, with an average shortfall of about $115,000. The gap depends on local costs, expected Social Security and nest egg income, and how long people live after 65. Below are the 12 places with the toughest math for seniors, plus the estimated deficit where strong figures are available.
1. New York: the biggest retirement gap
New York lands dead last for retirement solvency. Seniorly estimates the typical retiree needs about $1.12 million over 19.4 years but brings in roughly $670,000 from Social Security, savings, and investments, leaving a shortfall of about $448,000. High housing and healthcare costs, paired with longer-than-average retirements, drive the gap.
2. Hawaii: long lives, high prices
Hawaii’s seniors have the nation’s highest retirement income, but it still can’t keep up with sky-high costs. The study pegs an estimated $417,000 shortfall, reflecting both very high living expenses and one of the longest post-65 life expectancies in the U.S.
3. Washington, D.C.: costs outrun income
In the nation’s capital, retirees face an estimated $407,000 gap between lifetime retirement income and expected expenses. D.C.’s combination of premium housing, services, and healthcare pushes costs beyond what typical savings and Social Security cover.
4. Alaska: remote living, steep expenses
Alaska rounds out the “worst five,” with an estimated $342,000 retirement shortfall. High prices for housing, healthcare, and everyday goods, plus fewer low-cost alternatives, strain fixed incomes fast.
5. California: expensive essentials add up
California retirees face an estimated $337,000 gap, driven by elevated housing, insurance, and medical costs. Even sizable nest eggs and Social Security benefits often can’t match the state’s price levels over a decades-long retirement.
6. Massachusetts: comfort costs a premium
Massachusetts lands next, with an estimated shortfall of about $300,000. Strong incomes help, but high living and healthcare costs mean savings still fall short for many households over a typical retirement.
7. Rhode Island: small state, sizable gap
In Rhode Island, the study estimates a retirement deficit near $284,000. Modest income streams weighed against New England-level costs leave many retirees at risk of draining savings too soon.
8. Vermont: charming, but pricey to age
Vermont’s mix of higher living expenses and limited income growth creates an estimated shortfall of roughly $229,000. For many, fixed incomes can’t stretch far enough without careful housing and healthcare planning.
9. Louisiana: lower costs, but even lower incomes
Despite below-average costs, Louisiana still posts a large deficit, around $245,000, because typical retirement income trails far behind peers (the study cites projected incomes near $479,000). That income gap, not prices alone, drives the risk here.
10. Connecticut: high quality, high bills
Connecticut’s retirees face an estimated shortfall of about $149,000. Strong healthcare access and safety don’t come cheap, and typical retirement incomes rarely cover the full tab over 18–20 years.
11. Arkansas: incomes hold seniors back
Arkansas ranks 11th for risk in Seniorly’s list. The challenge isn’t runaway prices so much as limited retirement income; state retirees average about $526,000 or below in lifetime retirement income, leaving little cushion once essential costs stack up.
12. Mississippi: the surprise on a low-cost list
Mississippi is inexpensive, but incomes are even lower, pushing many households into the red. The study places it 12th for risk, with an estimated shortfall near $162,000, almost $50,000 worse than the national average gap.
