This Is What It Costs To Retire In Michigan

Detroit MI

22 December, 2021

12:40 PM

Description

By Samuel Stebbins, 24/7 Wall St. Detroit 2021-12-21 A 2019 report from the Federal Reserve found that nearly one in every four American adults have no retirement savings. During the economic crisis brought on by the COVID-19 pandemic, that share has likely grown. Despite stimulus payments and enhanced unemployment benefits, millions of Americans have reduced retirement account contributions or stopped them entirely — some have even been forced to make withdrawals. Here is what you can do if the coronavirus is threatening your retirement. At age 65, Americans are expected to live an average of another 19.4 years, and the typical retirement-age American spends $50,220 a year. Multiply those figures, and add in a little extra for unforeseen expenses and additional financial security, and a comfortable retirement costs an estimated $1,120,408 in the United States. The average 65 year old retiring in Michigan can expect to spend $1,007,484, nearly $113,000 less than the average cost nationwide. The affordability of a comfortable retirement in Michigan is due in part to the low cost of living in the state. Goods and services are 7.7% cheaper in Michigan than they are on average nationwide. As a result, the average annual expenditure of a retirement-age resident is about $3,900 less than it is across the U.S. State level calculations in this story are based on the average annual expenditure of $50,220 for Americans 65 years and older in 2019, as reported in the BLS Consumer Expenditure Survey. This figure is adjusted by state to account for both cost of living and life expectancy at age 65, and then multiplied by 115% in order to reflect greater financial stability and comfort in retirement. All data in this story is from the Bureau of Labor Statistics, Bureau of Economic Analysis, and the Institute for Health Metrics and Evaluation.     Can't see the article's infographic? Click here to view the original story.This story was originally published by 24/7 Wall St., a news organization that produces real-time business commentary and data-driven reporting for state and local markets across the country.