Ready to retire? If you’re in Utah, the answer is probably no.
An analysis by GOBankingRates indicates that Utah is dead-last among states for having residents that are retirement-ready.
The company reviewed key data in every state: the average savings for retirement households, state and local tax rates, the average total cost of living, and whether states tax Social Security income. Data was scored and weighted. The data came from the U.S. Census Bureau, Zillow and the Bureau of Labor Statistics.
Utah’s bottom ranking results from challenges in affordability, savings, and tax burdens that impact retirees, GOBankingRates said.
The average retirement savings in Utah is $315,160, worst among states and far below the national average of $429,525.
Utah’s average cost of living for homeowners is $56,127 annually, or $4,677 per month, among the highest.
Utah retirees also face a state and local tax rate of 7.42 percent and a tax on Social Security.
People most ready for retirement live in New Hampshire, benefiting from zero state and local taxes and no tax on Social Security. The average retirement savings balance there is $512,781.
Four states ranked in the top 10 have average retirement savings of more than $500,000: New Hampshire, Alaska, Connecticut and New Jersey. Connecticut, at No. 6 in the overall rankings, is the only state in the top 10 with a tax on Social Security. Three states that have zero state and local tax rates — New Hampshire, Delaware and Oregon — ranked in the top five. The fourth state, Montana, came in at No. 19.
Details are at https://www.gobankingrates.com/retirement/planning/retirement-readiness-in-all-50-states-how-do-you-compare/.