At a time when the traditional idea of retirement is no longer a reality for most, it’s interesting to assess how each U.S. state’s residents are making it work. While workers typically strive to still earn about 70 percent of their income once they retire, recent reports illuminate that this is simply not a possibility for most. A vast majority of U.S. retirees is only earning about 50 to 60 percent of their pre-retirement income.
But is the outlook dismal for all? Interestingly enough, residents in certain states seem to be faring better than others. Interest.com researched the current median incomes for workers and retirees in the 50 states and the District of Columbia to calculate the “replacement” percentage for each state based on its respective income numbers. It also calculated how much this percentage has changed since 2005, and the percentage of households led by someone 65 and over in each state. Here are the 10 states that post the best figures:
10. West Virginia
West Virginia is the first to make our top 10 list with an impressive replacement income of 63.03 percent. How does Interest.com get to this figure? The median income for the state’s residents between 45 and 65 of age is $45,019 and the median income for those 65 and older is $28,375. Thus, once those living in WV retire, they still make about 63.03 percent of their pre-retirement income. This number has increased by 10.17 percent since 2005, which is especially favorable for the 26.20 percentage of households that are currently led by someone 65 or older.