Many Americans dream of the day they can give up work for good. But for many that dream is stretching further and further away.

The average retirement age was 61 in 2022, up from 57 in 1991, according to a poll by research firm Gallup. 

But a new study has exposed just how much retirement ages can vary state by state. Personal finance website GoBankingRates analyzed the median income by age in every state, using data from the US Census Bureau.

Researchers then identified an ideal savings target for workers based on the average living costs in each area.

The firm’s calculations are based on the assumption workers began collecting paychecks at 22 and followed the golden 50/30/20 rule by which they allocated 50 percent of their income to necessities, 30 percent to wants and 20 percent to savings. 

Personal finance website GoBankingRates analyzed the median income by age in every state, using data from the US Census Bureau. Researchers then identified an ideal savings target for workers based on the average living costs in each area

Personal finance website GoBankingRates analyzed the median income by age in every state, using data from the US Census Bureau. Researchers then identified an ideal savings target for workers based on the average living costs in each area

Personal finance website GoBankingRates analyzed the median income by age in every state, using data from the US Census Bureau.

The findings spell bad news for workers in Hawaii who have a ‘realistic retirement age’ of 75 plus. Residents in the Aloha State would need $2,485,329 in savings to retire comfortably.

On average, the study estimates the average worker would have $2,33,542 saved up by the time they reach 74. 

On the other end of the spectrum, workers in Kansas benefit from the youngest retirement age of 52. GoBankingRates estimates residents of the Sunflower State need $808,127 in savings to retire comfortably.

If they follow the 50/30/20 rule, Kansans should exceed this savings goal by the time they’re 52, wracking up $843,700. 

It was followed by Nebraska, Illinois and Iowa where residents can afford to retire by 53, according to the study.  

Across the board 29 states had a retirement age of under 60. A further 20 had average retirement ages of 60 and above.

Rampant inflation and higher interest rates are eroding workers' opportunities to save for their twilight years - sparking fears of a nationwide 'retirement crisis'

Rampant inflation and higher interest rates are eroding workers’ opportunities to save for their twilight years – sparking fears of a nationwide ‘retirement crisis’

Only Hawaii workers would have to work past 70, the study suggested. District of Columbia was not included in the analysis.

It comes as experts repeatedly sound the alarm over America’s so-called ‘retirement crisis.’

A survey by Bankrate last month found that more than half of workers felt they were ‘behind’ on their retirement savings. Some 25 percent said they had not made any retirement contributions in a year.

The trend is being driven by both inflation and higher interest rates which are putting unprecedented pressure on budgets and leaving workers unable to save.

And many are even dipping into their later life savings to make their current ends meet. 

Figures from Bank of America in August show the number of people taking ‘hardship withdrawals’ from their 401(K)s had shot up by 36 percent in the last year.

What does retirement look like in each state?  
State Average retirement age Savings needed for retirement
Alabama 58 $818,555
Alaska 63 $1,487,698
Arizona 60 $1,126,187
Arkansas 62 $862,006
California 66 $1,678,882
Colorado 56 $1,105,331
Connecticut 61 $1,317,371
Delaware 61 $1,122,711
Florida 63 $1,074,046
Georgia 56 $827,246
Hawaii 75 $2,485,329
Idaho 56 $1,018,429
Illinois 53 $896,767
Indiana 54 $849,840
Iowa 53 $837,674
Kansas 52 $808,127
Kentucky 62 $936,742
Louisiana 60 $914,147
Maine 63 $1,291,300
Maryland 59 $1,442,509
Massachusetts 68 $1,889,184
Michigan 57 $889,815.00
Minnesota 54 $981,931
Mississippi 61 $764,676
Missouri 56 $835,936
Montana 62 $1,108,807
Nebraska 53 $884,601
Nevada 61 $1,080,998
New Hampshire 58 $1,305,205
New Jersey 57 $1,240,897
New Mexico 62 $921,099
New York 68 $1,625,003
North Carolina 59 $950,646
North Dakota 58 $974,978
Ohio 58 $884,601
Oklahome 56 $778,581
Oregon 62 $1,393,844
Pennsylvania 57 $994,097
Rhode Island 61 $1,249,588
South Carolina 59 $926,313
South Dakota 55 $929,790
Tennessee 57 $855,054
Texas 56 $895,029
Utah 54 $1,074,046
Vermont 62 $1,301,729
Virginia 56 $1,074,046
Washington 58 $1,272,182
West Virginia 63 $851,578
Wisconsin 57 $947,170
Wyoming 55 $895,029

Source: | This article originally belongs to Daily Mail

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