Many have requested the positive side to my previous blog which discussed a study examining the 10 worst states with retirement security focused on potential future retirement income, retiree costs and labor opportunities for individuals. The underlying study came from the National Institute on Retirement Security. This ranking is not predicated on the best places to retire, but rather the best states for retirement security based on ranking of specific metrics. To see the prior blog click http://blog.stewart.com/stewart/category/jones-on-real-estate/
There are some tragic conclusions from these data. Iowa, for example, tops the list nationwide as the percentage of private-sector employees in some form of employer-sponsored retirement plans at 54.1 percent. Wow—the state with the most retirement plans barely exceeds one-half of the potential savers. For many, the availability of a job into retirement age is going to be a necessity.
So where are the best states to retire, as far as economic factors impacting retirement security are considered: Potential Future Retirement Income; Retiree Costs; and Labor Market Opportunities?
What strikes me first and foremost is the limited amount of savings over and above any pension or retirement plan most people have. In the top-10 ranked states in the study, the largest average retirement account balance excluding pensions was Pennsylvania at $40,700. We essentially are a country of individuals that are not adequately prepared for the financial responsibilities of retirement. The ability to conserve and leverage that becomes even more important.
To read the states in the top 10-summary as reported in MarketWatch click: http://www.marketwatch.com/story/10-states-that-score-highest-for-retirement-security-2014-04-07
To examine the entire report from the National Institute on Retirement Security including all states, click http://www.nirsonline.org/storage/nirs/documents/2014%20Scorecard/final_2014_scorecard.pdf
As stated in the prior blog, the decision of where to live and reside in retirement may have no economic ties or considerations for many as they want to be near family and friends regardless of associated costs. Others may have had life-long dreams of retiring in a specific region or town and will do so regardless of economics. Yet for some, economics will come into play in their retirement decisions.