Social Security Insolvency Projected 6 Months Sooner, Chief Actuary Says
Letters sent Aug. 5 to Sen. Ron Wyden (D‑Ore.) and Rep. Steven Horsford (D‑Nev.) say the combined Old‑Age and Survivors Insurance (OASI) and Disability Insurance (DI) funds are now expected to be depleted in the first quarter of 2034, rather than the third quarter of that year as in the most recent trustees' report.
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2 hours ago
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Dreaming of a Middle-Class Retirement in the Midwest? Here's What You Need To Save
Planning to retire in the Midwest? The amount of money middle-class retirees need in savings varies greatly depending on whether you're retiring with or without Social Security benefits. An original GOBankingRates study from January 2025 revealed that a 20-year retirement without Social Security requires more than $1 million in four Midwestern states. Explore More: See Next: However, you won't need to save nearly as much if you're planning to draw these benefits. On the high end, a retiree in Minnesota would need $705,255 in savings while retirees in Missouri would need $456,775 saved up to fund a 20-year retirement with Social Security. Ranked in alphabetical order, here's how much you need to save for a 20-year middle-class retirement in the Midwest. Illinois Middle-class income range: $54,468 to $163,404 Amount needed for 20-year retirement with Social Security: $627,202 Amount needed for 20-year retirement without Social Security: $1,089,360 Find Out: Learn More: Indiana Middle-class income range: $46,701 to $140,102 Amount needed for 20-year retirement with Social Security: $471,855 Amount needed for 20-year retirement without Social Security: $934,013 Be Aware: Iowa Middle-class income range: $48,765 to $146,294 Amount needed for 20-year retirement with Social Security: $513,135 Amount needed for 20-year retirement without Social Security: $975,293 Kansas Middle-class income range: $48,426 to $145,278 Amount needed for 20-year retirement with Social Security: $506,362 Amount needed for 20-year retirement without Social Security: $968,520 Michigan Middle-class income range: $47,433 to $142,298 Amount needed for 20-year retirement with Social Security: $486,495 Amount needed for 20-year retirement without Social Security: $948,653 That's Interesting: Minnesota Middle-class income range: $58,371 to $175,112 Amount needed for 20-year retirement with Social Security: $705,255 Amount needed for 20-year retirement without Social Security: $1,167,413 Missouri Middle-class income range: $45,947 to $137,840 Amount needed for 20-year retirement with Social Security: $456,775 Amount needed for 20-year retirement without Social Security: $918,933 Nebraska Middle-class income range: $49,990 to $149,970 Amount needed for 20-year retirement with Social Security: $537,642 Amount needed for 20-year retirement without Social Security: $999,800 Discover More: North Dakota Middle-class income range: $50,633 to $151,898 Amount needed for 20-year retirement with Social Security: $550,495 Amount needed for 20-year retirement without Social Security: $1,012,653 Ohio Middle-class income range: $46,453 to $139,360 Amount needed for 20-year retirement with Social Security: $466,908 Amount needed for 20-year retirement without Social Security: $929,067 South Dakota Middle-class income range: $48,281 to $144,842 Amount needed for 20-year retirement with Social Security: $503,455 Amount needed for 20-year retirement without Social Security: $965,613 For You: Wisconsin Middle-class income range: $50,447 to $151,340 Amount needed for 20-year retirement with Social Security: $546,775 Amount needed for 20-year retirement without Social Security: $1,008,933Methodology: Using the cost of living for each state, as sourced from the Missouri Economic Research and Information Center, and the average cost of living for retired residents, as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey, the average expenditure costs were calculated for each state. The average single-family home value from December 2024 was sourced from Zillow Home Value Index and the average mortgage cost was calculated (assuming a 10% down payment and using the national average 30-year fixed mortgage rate, as sourced from the Federal Reserve Economic Research). Using the average mortgage and average expenditure costs, the average cost of living was calculated. Middle-class income is defined by Pew Research Center as two-thirds to double the national median income. The minimum income needed to be middle class was calculated and the savings needed to retire was calculated. The average income for one person was sourced from the Social Security Administration for December 2024, and the retirement savings needed after Social Security benefits was calculated. All data was collected on and is up to date as of Jan. 24, 2025. More From GOBankingRates New Law Could Make Electricity Bills Skyrocket in These 4 States I'm an Economist: Here's When Tariff Price Hikes Will Start Hitting Your Wallet 5 Strategies High-Net-Worth Families Use To Build Generational Wealth These Cars May Seem Expensive, but They Rarely Need Repairs This article originally appeared on Dreaming of a Middle-Class Retirement in the Midwest? Here's What You Need To Save Sign in to access your portfolio
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4 hours ago
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Dreaming of a Middle-Class Retirement in the South? Here's What You Need To Save
It's a win-win for the middle class to consider retiring in the South. These states offer great weather, plenty of recreational activities and a relatively low cost of living for your retirement years. Even a modest savings goes a long way in funding 20 years of retirement. According to a recent GOBankingRates study, those retiring without Social Security benefits in Arkansas, Louisiana, Mississippi and West Virginia need anywhere from $270,000 to $338,000 saved up for a comfortable 20-year retirement lifestyle. See More: Read Next: See how much members of the middle-class need in savings to retire with and without Social Security benefits in the South. Alabama Middle-class income range: $41,351 to $124,054 Amount needed for 20-year retirement with Social Security: $364,868 Amount needed for 20-year retirement without Social Security: $827,027 Discover More: Explore Next: Arkansas Middle-class income range: $39,182 to $117,546 Amount needed for 20-year retirement with Social Security: $321,482 Amount needed for 20-year retirement without Social Security: $783,640 Learn More: Florida Middle-class income range: $47,807 to $143,422 Amount needed for 20-year retirement with Social Security: $493,988 Amount needed for 20-year retirement without Social Security: $956,147 Georgia Middle-class income range: $49,776 to $149,328 Amount needed for 20-year retirement with Social Security: $533,362 Amount needed for 20-year retirement without Social Security: $995,520 Kentucky Middle-class income range: $41,611 to $124,834 Amount needed for 20-year retirement with Social Security: $370,068 Amount needed for 20-year retirement without Social Security: $832,227 That's Interesting: Louisiana Middle-class income range: $40,015 to $120,046 Amount needed for 20-year retirement with Social Security: $338,148 Amount needed for 20-year retirement without Social Security: $800,307 Mississippi Middle-class income range: $36,610 to $109,830 Amount needed for 20-year retirement with Social Security: $270,042 Amount needed for 20-year retirement without Social Security: $732,200 North Carolina Middle-class income range: $46,603 to $139,808 Amount needed for 20-year retirement with Social Security: $469,895 Amount needed for 20-year retirement without Social Security: $932,053 For You: Oklahoma Middle-class income range: $42,402 to $127,206 Amount needed for 20-year retirement with Social Security: $385,882 Amount needed for 20-year retirement without Social Security: $848,040 South Carolina Middle-class income range: $44,545 to $133,636 Amount needed for 20-year retirement with Social Security: $428,748 Amount needed for 20-year retirement without Social Security: $890,907 Tennessee Middle-class income range: $44,731 to $134,194 Amount needed for 20-year retirement with Social Security: $432,468 Amount needed for 20-year retirement without Social Security: $894,627 View More: Texas Middle-class income range: $50,861 to $152,584 Amount needed for 20-year retirement with Social Security: $555,068 Amount needed for 20-year retirement without Social Security: $1,017,227 Virginia Middle-class income range: $60,649 to $181,948 Amount needed for 20-year retirement with Social Security: $750,828 Amount needed for 20-year retirement without Social Security: $1,212,987 West Virginia Middle-class income range: $38,611 to $115,834 Amount needed for 20-year retirement with Social Security: $310,068 Amount needed for 20-year retirement without Social Security: $772,227Methodology: Data was sourced from the U.S. Census American Community Survey, the Missouri Economic Research and Information Center, the Bureau of Labor Statistics Consumer Expenditure Survey, Zillow Home Value Index, Federal Reserve Economic Research. Middle-class income is defined by Pew Research Center as two-thirds to double the national median income. The minimum income needed to be middle class was calculated and the savings needed to retire was calculated. The average income for one person was sourced from the Social Security Administration for December 2024, and the retirement savings needed after Social Security benefits was calculated. All data was collected on and is up to date as of Jan. 24, 2025. More From GOBankingRates New Law Could Make Electricity Bills Skyrocket in These 4 States I'm an Economist: Here's When Tariff Price Hikes Will Start Hitting Your Wallet 5 Strategies High-Net-Worth Families Use To Build Generational Wealth 6 Hybrid Vehicles To Stay Away From in Retirement This article originally appeared on Dreaming of a Middle-Class Retirement in the South? Here's What You Need To Save
Yahoo
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How Much the Average Upper Class Retiree Receives in Benefits at Age 75
Retirement can be one of the most challenging phases because not only are you going through a major lifestyle change, but you're also having to figure out how to make your savings last the rest of your life. Research from the National Council on Aging found that 80% of older adults in the U.S. are financially struggling or at risk of struggling. Read More: Find Out: Part of these struggles may stem from the relatively low benefit amounts that Social Security recipients receive. On average, monthly Social Security retirement benefits for a 75-year-old equal $2,064.53, according to Social Security Administration (SSA) data, as of December 2024. Yet even those near the top of the socioeconomic ladder can struggle. An analysis by the Center for Retirement Research at Boston College found that among older Americans considered to be high-risk borrowers due to their debt burdens, about one-fifth have high levels of overall wealth, but they're just perhaps not managing it ideally. However, relying on Social Security typically isn't enough to pull retirees out of a hole, even for those receiving the most benefits. Calculating Average Upper Class Social Security Benefits at Age 75 The average 70-79 year old in the 90th percentile of Social Security benefit amounts gets $3,105 per month, according to the SSA. That's about 59% more than the $1,951 average for 70-79 year olds at the median. So, if we add 59% to the average reported Social Security retirement benefits of a 75-year-old — $2,064.53 — that results in the average 75-year-old, upper-class retiree at the 90th percentile of Social Security benefits getting an estimated $3,283 per month. While that's a lot more than the average, it still hardly covers necessities like housing payments, medical care, groceries, and more, especially for those who don't have a spouse to combine benefit checks with. That's why relying on other sources of retirement income, like a 401(k) or individual retirement account (IRA), is so important. Discover Next: Urban Adams, wealth manager at Dynamic Wealth Advisors, noted that based on the clients he works with, Social Security benefits are 'largely supplemental and factored into their financial plan with other resources — passive income, retirement savings, non-retirement savings, etc.' 'As it relates to those in the 90th percentile, it is probably likely that they earned a high wage throughout their working career and may also have higher underlying expenses,' he added, meaning that Social Security checks typically aren't enough to rely on. Plus, while upper-class retirees may have more of these other income sources to rely on, having wealth doesn't always equate to being in the best financial position if expenses are too high, as the Boston College study shows. So, no matter where you fall on the scale of average retirement benefits, it's important to have a full retirement plan that balances your income and expenses in a way that can help you enjoy this phase of your life, rather than stress over bills. More From GOBankingRates 5 Old Navy Items Retirees Need To Buy Ahead of Fall How Far $750K Plus Social Security Goes in Retirement in Every US Region This article originally appeared on How Much the Average Upper Class Retiree Receives in Benefits at Age 75
