Seniors risk outliving their retirement savings in these states

American retirees are likely to outlive their savings in 41 states, according to a new report.

Surveys have shown that Americans fear running out of money in retirement more than they fear death itself. People are living longer, which means retirement lasts longer, and retirement costs are rising.

A new report from CareScout, the long-term care network, finds that the average American at age 65 faces a retirement shortfall of $109,000. That's the difference between how much income they can expect, from Social Security, savings and other sources, and how much they can expect to spend on the expenses of daily life.

The report draws on state-level estimates of life expectancy at age 65 (16 to 20 years, more or less, depending on the state), average retirement benefits, median net worth and expected retirement expenses. 

Retirees typically rely on Social Security to cover many of their expenses, along with retirement savings. Social Security benefits don't run out, but savings can. That's why many Americans speak of a need for $1 million or more in savings to fund a retirement that could stretch 30 or 40 years. 

Not surprisingly, seniors are more likely to outlive their savings in states with notoriously high living costs, including New York, California, Alaska and Massachusetts.

By contrast, retirees enjoy a financial edge in such states as Minnesota, Utah and Colorado, where residents enjoy high retirement income and expenses that are relatively manageable.  

The goal of the report, according to CareScout CEO Samir Shah, is to encourage Americans to plan for retirement. Research by AARP shows that many older Americans don't work with professional retirement planners.

"Americans are not ready for retirement," Shah said. "People have not thought about how much money they will 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 about $1.18 million in expenses and $712,000 in income in retirement. Projected shortfall: $471,000.

District of Columbia. Expenses average $1.22 million and income averages $790,000 over retirement. Projected shortfall: $432,000. 

California. Seniors can expect $943,000 in income and $1.34 million in expenses during retirement. Projected shortfall: $395,000. 

Alaska. Income averages $769,000 and expenses average $1.12 million in retirement. Projected shortfall: $350,000.  

New Mexico. Retirees can expect income of $555,000 and expenses of $832,000. Projected shortfall: $277,000.

Louisiana. Retirement income averages $531,000 and expenses average $772,000. Projected shortfall: $241,000.

Arkansas. Retirees can expect expenses of $727,000 and income of $490,000. Projected shortfall: $237,000.

Vermont. Retirees can expect income of $819,000 and expenses of $1.05 million in retirement. Projected shortfall: $232,000.

Kentucky. Seniors can expect expenses of $730,000 and income of $521,000 in retirement. Projected shortfall: $209,000.

Rhode Island. Seniors can expect income of $819,000 and expenses of $1.02 million in retirement.Projected shortfall: $200,000.

Retirees also risk outliving their savings in these states: 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.

Nine states where retirees can expect a ‘surplus'

The CareScout report found only nine states where retirees can expect a financial surplus in retirement, through some combination of lower expenses and higher income.

Here are the retirement "surplus" states:

Washington. Retirees can expect a whopping average income of $1.3 million and expenses of $1.02 million in retirement. Projected surplus: $276,000. 

New Hampshire. The average senior can expect $1.24 million in retirement income, and $1 million in expenses. Projected surplus: $240,000.

Colorado. Income averages $1.14 million and expenses average $949,000in retirement. Projected surplus: $188,000.

Nebraska. Retirees can expect income of $969,000 and expenses of $824,000. Projected surplus: $145,000.

Idaho. Retirement expenses average $896,000, and income averages $1 million Projected surplus: $112,000.

Minnesota. Expenses average $871,000 and income averages $980,000 in retirement.Projected surplus: $109,000.

Utah. Seniors can expect income of $976,000 and expenses of $897,000 over the course of their retirement.Projected surplus: $79,000.

Maryland. Seniors can expect income of $1.08 million and expenses of $1.06 in retirement.Projected surplus: $21,000.

Montana. Expenses average $878,000 and income averages $897,000 in retirement.Projected surplus: $19,000.

How to avoid outliving your savings in retirement

Don't want to outlive your savings? Here are some tips from the experts.

Don't underestimate how long you will live 

American life expectancy is about 79 years. By the time you reach retirement, however, your life expectancy is longer. A woman of 70, for example, can expect to live to 87.   

Many older Americans don't know how long their own retirement is going to last: in other words, how long they are going to live. 

Longevity literacy matters in retirement planning. If your retirement budget assumes you will live to 75, and you make it to 95, you will probably run out of money. 

Maximize your retirement savings 

One sure-fire way to build retirement savings is to make aggressive contributions to a 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 they retire.  

And try not to raid your retirement savings for a household expense. Instead, open an emergency savings account.  

Claim Social Security later

The longer you wait to claim Social Security, the larger your monthly benefit checks will be. 

Based on the longevity figures above, you're generally better off claiming Social Security later in life, if you can afford to wait. Ideally, wait until age 70, when your monthly benefit maxes out. 

In a 2025 story, USA TODAY explained the math behind that rule of thumb.  

This article originally appeared on USA TODAY: Seniors risk outliving their retirement savings in these states

Reporting by Daniel de Visé, USA TODAY / USA TODAY

USA TODAY Network via Reuters Connect

Copyright Reuters or USA Today Network via Reuters Connect

This story was originally published June 26, 2026 at 7:13 PM.