What age will YOU retire? Fascinating study reveals when workers can afford to give up work in every state

Many Americans dream of the day they can leave their jobs for good. But for many, that dream extends further and further away.

According to a poll by research firm Gallup, the average retirement age in 2022 was 61 years, compared to 57 years in 1991.

But a new study has shown just how much retirement ages can vary from state to state. Personal finance website GoBanking Rates analyzed the median income by age in each state, using data from the US Census Bureau.

Researchers then identified an ideal savings goal for employees based on the average cost of living in each area.

The company’s calculations are based on the assumption that employees started collecting paychecks at age 22 and followed the golden 50/30/20 rule, spending 50 percent of their income on necessities, 30 percent on needs and 20 percent in savings.

Personal finance website GoBanking Rates analyzed the median income by age in each 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 or older. Aloha State residents would need $2,485,329 in savings to retire comfortably.

On average, the study estimates that the average worker would have saved $2,33,542 by the time he turns 74.

On the other end of the spectrum, workers in Kansas benefit from the youngest retirement age of 52. GoBankingRates estimates that Sunflower State residents 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 are 52, which would net $843,700.

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

Across the board, 29 states had a retirement age of less than 60. Another 20 had an average retirement age of 60 and above.

Rampant inflation and higher interest rates are undermining workers’ ability to save for their senior years – raising fears of a nationwide ‘pension crisis’

Only Hawaii workers should continue working past age 70, the study suggested. District of Columbia is not included in the analysis.

It comes as experts repeatedly sound the alarm about America’s so-called “pension crisis.”

A Bankrate survey last month found that more than half of workers felt “behind” on their retirement savings. About 25 percent said they had not made pension contributions in a year.

This trend is driven by both inflation and higher interest rates, which are putting unprecedented pressure on budgets and limiting workers’ ability to save.

And many even use their later life savings to make their current ends meet.

August figures from Bank of America show that the number of people taking “hardship” withdrawals from their 401(K)s rose 36 percent over the past year.