Retirees in 41 States Risk Outliving Their Savings, Report Finds

Washington, New Hampshire, Colorado, Nebraska, Idaho, Minnesota, Utah, Maryland, and Montana where retirees were expected to have enough financial cushion to cover all of their expected expenses, a new report from CareScout found.

Audrey Simons

Published: 6/26/2026, 4:30:38 PM EDT

Retirees in 41 States Risk Outliving Their Savings, Report Finds — A Social Security card sits alongside checks from the U.S. Treasury in Washington on Oct. 14, 2021. (Kevin Dietsch/Getty Images)

Retirees across the country are facing growing financial challenges, with older adults now projected to outlive their retirement funds in almost every state, according to a new study.

A CareScout report released on Wednesday found that the average 65-year-old is expected to fall $109,000 short of what they need to cover retirement expenses—which are estimated to be at $897,000—after factoring in Social Security income, savings, and any other investments.

The company, which focuses on aging and long-term care, noted that seniors in 41 states, as well as Washington, D.C., are likely to be affected, with only Washington, New Hampshire, Colorado, Nebraska, Idaho, Minnesota, Utah, Maryland, and Montana leaving retirees enough financial cushion to cover all of their expected expenses.

"Rising prices for housing, healthcare, food and other basics can chip away at even the most carefully built nest eggs," CareScout executive Christine Healy, who authored the report, wrote. "What looked like enough money at 65 may run thin by 75, and one bad year can upset the whole equation."

According to the report, the size of the financial shortfall varies greatly depending on where seniors live. New York, which is home to more than three million adults over the age of 65, has the largest gap. There, retirees are expected to have a $471,000 deficit as retirement expenses exceed more than $1.1 million.

Washington, D.C., and California—where living costs rank among the highest across the country—followed close behind with projected deficits of $432,000 and $395,000, respectively.

Alaska and New Mexico rounded out the states with the highest anticipated shortfalls. CareScout estimated its shortages to be at $350,000 and $277,000, respectively, pointing to housing, health care, and other everyday expenses as contributing factors.

"Seniors in Arkansas and Kentucky face retirement on projected incomes of just $490,000 and $521,000, respectively, the lowest levels in the country," Healy said. "Mississippi, Oklahoma, Louisiana, New Mexico, Alabama and West Virginia are all near the bottom as well, with incomes below $580,000—leaving little margin for unexpected costs."

The analysis compared state-level life expectancy estimates with all retirement income, including average annual Social Security benefits and median net worth, to estimate whether seniors were likely to have enough resources in their golden years.

Of the nine states where seniors are positioned to cover all of their retirement costs, Washington ranked the best. Older adults who live in the state are expected to spend about $1.02 million on living expenses, with almost $1.3 million available in benefits, savings, and investments, leaving them more than $275,000 left over.