A new analysis finds that in 41 states (plus D.C.), the typical retiree will run out of money leaving an average lifetime gap of about $115,000. Only nine states buck the trend, where projected retirement income plus savings are expected to cover lifetime costs and even leave a cushion. Below are those nine “surplus” states, the estimated dollar buffer, and the simple forces behind each result: retirement income, cost of living, and how long people typically live after 65. Use these numbers as a gut check then run your own plan with your income, expenses, and health outlook.
1. Washington: biggest cushion (about $146,000)
Washington tops the “safe list.” Seniors here are projected to bring in roughly $1.13 million over a ~20-year retirement, while spending about $985,000, leaving an estimated surplus near $146,000. The edge comes from relatively strong retirement income paired with only moderate costs versus high-expense states. That mix makes savings last longer without dramatic lifestyle cuts.
How to use it: if you already live in Washington, the numbers suggest you may not need to move to protect your nest egg. Still, a thin housing or health-care margin can erase any surplus. Build an annual budget, price Medicare plan options, and stress-test for one-time shocks (roof, car, surgery) so the cushion remains intact.
2. Utah: strong incomes, manageable costs (about $121,000)
Utah’s projected retirement income (~$994,000) comfortably clears expected lifetime expenses (~$873,000), leaving a surplus near $121,000. That combination of decent nest eggs and moderate costs puts the typical retiree on steadier footing than in most states. (Source: Seniorly)
How to use it: a five-figure buffer can disappear if you overspend early or claim Social Security sub-optimally. Map a simple withdrawal plan (e.g., cover basics with guaranteed income, pull from savings for wants) and revisit annually. If you’re relocating, compare housing and health costs by county, not just statewide averages.
3. Montana: modest surplus, big outdoors (about $43,000)
Montana makes the top five with an estimated lifetime surplus of about $43,000 for the typical retiree. The cushion isn’t massive, but lower day-to-day costs and reasonable housing can keep retirement budgets balanced, especially outside pricier hotspots.
How to use it: a mid-five-figure surplus still requires discipline. Track annual health expenses and set aside funds for winter utilities and travel. If you own a home, plan for timing and taxes on any downsizing so proceeds truly extend your runway.
4. Colorado: income helps offset higher prices (about $38,000)
Colorado’s retirees are projected to finish with a ~$38,000 surplus. It isn’t the cheapest state, but projected lifetime income tends to outpace expenses enough to leave a buffer, particularly for homeowners who locked in lower mortgage rates or have notable equity.
How to use it: the Front Range can be pricey; differentials by metro matter. Compare premiums and property taxes neighborhood-by-neighborhood, and phase bigger discretionary spends (home projects, travel) so they don’t crowd the essentials in any single year.
5. Iowa: steady value, smaller cities (about $32,000)
Iowa’s typical retiree is projected to end with roughly $32,000 left. A lower overall cost profile, especially for housing, keeps budgets in balance even without sky-high incomes. It’s not glamorous, but predictability counts in retirement math.
How to use it: the surplus is meaningful but not bulletproof. Lock in utility and insurance savings where possible, and calendar preventive health care to avoid surprise bills that eat into the cushion.
6. Minnesota: solid finances, long lives (about $23,000)
Minnesota shows a smaller but real surplus, about $23,000 on average. The twist: life expectancy is relatively high, which raises years of spending. That the surplus survives at all points to reasonable costs and stable income streams. (Source: The Spokesman-Review)
How to use it: longer retirements magnify small leaks. Automate savings for medical out-of-pocket costs and price Part D and Medicare Advantage plans annually; plan ahead for winter heating bills and summer travel so cash flow stays smooth.
7. Maryland: high incomes, thin edge (about $13,000)
Maryland makes the list thanks to strong projected retirement income, but higher regional prices keep the leftover small, about $13,000 by Seniorly’s estimate. In other words, the paycheck helps, yet it doesn’t fully tame mid-Atlantic costs.
How to use it: a slim surplus demands careful sequencing so cover must-haves first (housing, health), then spread larger wants over several years. Build a home-maintenance plan so big fixes don’t bunch up and erase the buffer.
8. Kansas: costs do the heavy lifting (about $8,000)
Kansas posts some of the nation’s most affordable retirement expenses (around $746,000 over the period Seniorly modeled), and that cost relief nudges the average retiree into a small surplus of about $8,000. It’s proof that lower prices can counter modest incomes.
How to use it: with only a few thousand in projected wiggle room, think “boring is good.” Keep housing simple, maintain an emergency fund for car and roof repairs, and comparison-shop Medicare and prescriptions yearly to keep that surplus from slipping negative.
9. South Carolina: razor-thin buffer (about $2,000)
South Carolina rounds out the nine with an estimated surplus of just $2,000, basically break-even. Lower living costs help, but the tiny margin means one hospitalization, storm repair, or family support gift can flip the math.
How to use it: treat this as a warning to add flexibility and delay big purchases, pace home updates, and keep receipts for medical tax deductions. Document a withdrawal plan and revisit it each year, because a thin surplus requires active steering to stay on course.
