(NewsNation) — Retirees in the Washington, DC area have the highest number pension income in the country, according to a new study.
The analysis from SmartAsset found that residents of Arlington, Virginia, had the highest retirement income, with an average of $90,140. Cambridge, Massachusetts ($79,563) and The Woodlands, Texas ($79,539) were second and third on the list.
Of the 345 major cities analyzed, three of the top eight were in the Washington, DC region. Most of that comes from higher pensions, IRAs and other retirement accounts rather than Social Security, the report said.
Several California cities reached the top ten, including Berkeley ($78,949), Carlsbad ($74,345) and Thousand Oaks ($73,634). Highlands Ranch, Colorado, and Naperville, Illinois, also ranked high on the list, with retirement incomes of more than $75,000.
The city totals were calculated using US Census data and include all income from retirement accounts such as pension plans, IRAs and 401(k)s, as well as Social Security income. 'Pensioners' are defined as people aged 65 or older.
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Retirement plans like 401(k)s and IRAs make up the bulk of most people's retirement income, and a rising stock market has helped strengthen these balance sheets recently.
Last quarter, the number of millionaires with retirement accounts rose to a record 485,000, up 15% from the previous quarter and up 43% from a year ago. new dates from Trouw.
Individuals in that group had been in their 401(k) plans for an average of 26 years at an average contribution rate of 17%.
However, these accounts are not the norm and make up only 2% of the approximately 24 million defined contribution accounts at Fidelity. Bloomberg reports this.
Instead, SmartAsset's city analysis suggests that most retirees live on far less than the typical American household.
Across all major cities, the median retirement income was $52,723, well below the median household income of $74,580. That gap underlines the financial anxiety many feel today.
“You look at your 401(k) and your savings, and to make ends meet you start taking $100 here and $50 there. Before you know it, it's gone,” said Shari Evans Buford, a retiree from Florida, told NewsNation.
According to a recent AARP researchone in five Americans over 50 have no retirement savings, and nearly two-thirds fear they won't have enough money to cover their living expenses.
The average person now thinks they need $1.46 million to retire comfortably, even though savers have set aside an average of only $88,400, a sum of $1.46 million.Northwestern Mutual surveyfound it.
As a general rule of thumb: Loyalty suggests have ten times your pre-retirement income saved before age 67 to maintain your current lifestyle.
But with inflation eating into US budgets, many retirees, more than 12%I “didn't retire” this year.
Shinobu Hindert, a financial educator, said other future retirees are taking a “soft retirement,” where they work fewer hours but continue to work for the benefits.
“They're not leaving the workforce completely, but they're finding part-time jobs that may provide additional health care coverage,” Hindert told NewsNation's.Morning in America.”
SmartAsset's report suggests that Social Security will be the main source of income for many. In 14 of the cities surveyed, residents relied on Social Security for more than half of their retirement income, including those in Brownsville, Texas; South Bend, IN; and Spokane, WA.
In dollar terms, retirees in Ann Arbor, Michigan, ranked highest for Social Security income at $30,428, followed by Carmel, Indiana ($30,069) and Goodyear, Arizona ($29,157).
According to federal datathe average Social Security benefit for retired workers was $1,915 per month in April. However, the size of that check varies depending on how long a person worked, what they created, and when they started collecting.
This year on average almost 68 million people will receive Social Security benefits every month, and by 2035 the number of Americans age 65 and older is expected to reach 75 million.
