• Running out of money in retirement is a big concern for many Americans.
• Economic uncertainty is making it even harder to afford retirement.
• These are the top states where your retirement nest egg will go the furthest.

As people live longer and spend more time in retirement, it's more important now than ever to plan for life after your job.

To make matters even more complicated, the ongoing trade war has created a tricky economic backdrop for older Americans to retire in, causing people to delay their retirements, wait to collect Social Security, or "unretire" and go back to work.

That's why being smart about where you live in your golden years can have far-reaching consequences, as housing costs — whether it be a mortgage, property taxes, or rent expenses — are typically the largest part of your monthly expenses.

Financial technology company Remitly compiled data on Americans' retirement savings across the country. How much you need in retirement varies, but the rule of thumb is that by the time you retire, you should aim to have around 10 times your salary saved. Remitly found that Americans between the ages of 55 and 64 have typically saved an average of $537,650 and a median of $185,000 — meaning there's high variability in the amounts that people have saved.

When calculating how much money you need for a comfortable retirement, take into consideration annual expenditures such as housing, utilities, transportation, and healthcare — and also factor in an additional 20% buffer for unexpected costs.

Depending on the state you retire in, the cost of living could fluctuate wildly. Remitly looked at the average retirement savings and expected annual expenditures for a comfortable retirement for each state to calculate how long a retirement nest egg lasts in different parts of the country.

While the annual expenditure to retire comfortably in many states hovered in the $60,000 to $80,000 range, a few states took the cake for sky-high costs of living. In Hawaii, Remitly found the average annual expenditure to be $129,296. California was the second-most expensive state, with annual retirement expenditures coming out to $100,687. In those states, retirement savings will only last 2.8 and 4.5 years, respectively.

On the other hand, Kansas takes first place for sustainable living costs in retirement — retirement savings last 7.5 years on average there.

Listed below are the top ten states where retirees can get the most bang for their buck. The average amount of savings at the time of retirement, the annual retirement expenditures, and number of years the retirement savings will last are also included.

Kansas

Average retirement savings: $452,703
Annual expenditures: $60,620
Years of comfortable retirement: 7.5 years

Iowa

Average retirement savings: $465,127
Annual expenditures: $62,565
Years of comfortable retirement: 7.4 years

Minnesota

Average retirement savings: $470,549
Annual expenditures: $65,828
Years of comfortable retirement: 7.1 years

Virginia

Average retirement savings: $492,965
Annual expenditures: $70,342
Years of comfortable retirement: 7 years

Pennsylvania

Average retirement savings: $462,075
Annual expenditures: $66,384
Years of comfortable retirement: 7 years

Illinois

Average retirement savings: $449,983
Annual expenditures: $64,787
Years of comfortable retirement: 6.9 years

Connecticut

Average retirement savings: $545,754
Annual expenditures: $78,605
Years of comfortable retirement: 6.9 years

South Dakota

Average retirement savings: $449,628
Annual expenditures: $64,856
Years of comfortable retirement: 6.9 years

Michigan

Average retirement savings: $439,568
Annual expenditures: $63,745
Years of comfortable retirement: 6.9 years

Kentucky

Average retirement savings: $441,757
Annual expenditures: $64,301
Years of comfortable retirement: 6.9 years

• Economic-slowdown concerns are prompting Americans to rethink their retirement plans.
• Financial advisors and researchers advise older adults to keep working and delay taking Social Security.
• This is the final installment in BI's six-part series on making major life decisions during this period of massive change.

An uncertain macro environment makes now a difficult time to make major retirement decisions. Dozens of older Americans have told Business Insider that in recent months.

They're worried about a recession, staff cuts at the Social Security Administration, their 401(k)s amid market volatility, and inflation exacerbated by tariffs.

The primary drivers of these concerns — the unpredictable and ever-fluctuating policy initiatives of President Donald Trump — are a far cry from the comparatively placid approach of his predecessor. It's created a difficult set of circumstances for older Americans.

We're looking at the steps people at or near retirement age can take to safeguard their nest eggs and investments. Detailed below is what financial advisors, researchers on aging, and retirees told us about making major choices about retirement in 2025.

Delay retirement if you can

For those who can continue working and saving, now may be a good time to extend their retirement timeline, said Wes Battle, a Certified Financial Planner at the National Active and Retired Federal Employees Association.

BI has spoken with older Americans who are doing just that: choosing to delay retirement by a few years or return to part-time work.

"Many people have never even calculated what it would cost to retire and what their retirement income would be," Battle said. "Just looking at these things is a step in the right direction."

Because of a hiring slowdown and economic uncertainty, it may be best to hang on to your job a little longer, if you have one, Battle said.

And if you do decide to retire soon, you can try to go back to work if your financial needs change. Unretirements are increasingly common: LinkedIn Economic Graph reported about 13% of baby boomers on the platform returned to the workforce in 2023 — which was a five-year high.

Consider holding off on adjusting investments and taking Social Security

On the finances front, Battle said he'd seen a recent increase in clients who are worried that current economic conditions will hurt their retirement nest eggs.

"That's the crux of all of this: 'Am I going to be OK?' And that could be different for everybody," he said.

While it can be tempting to make changes to your 401(k) or investment portfolio in times of volatility, Battle advises riding out the market.

BI has heard from retirees who swear by this hands-off approach. Some said they continued to save through 2008 and other recessions — instead of adjusting their investment strategies — and now feel secure in their retirement assets.

Besides 401(k)s, Battle said individual retirement accounts could also be a great way to build savings, even if you can afford to save only small amounts at a time.

As for Social Security, Battle said that it's best to delay claiming benefits until you reach full retirement age, which is typically 67, and can receive a higher monthly check. Still, many older Americans have told BI that relying on Social Security as their primary source of income is not enough and they still need to work, at least part time, to pay their bills.

Make sure your 'longevity planning' goes beyond finances

Madonna Harrington Meyer, a sociology professor who works with Syracuse University's Aging Studies Institute, said that cultivating a healthy social life is just as important as saving money when it comes to retirement planning. That's because even the best-laid retirement plans can be derailed by a divorce, the loss of a spouse, medical bills, job loss, or other unexpected expenses. Whatever your life circumstances, a strong support system in retirement is crucial.

So even if you aren't sure whether you can retire, you can work on your community, which might involve pursuing hobbies, moving to live near family, and investing in friendships. Harrington Meyer said that continuing to work part time, volunteering, or caring for grandchildren could also be social outlets. Working on your relationships can also give you a sense of agency, which is valuable in uncertain times.

In a survey from AARP and the University of Michigan, one-third of older adults of all income levels reported feeling lonely sometimes or often in 2024. Harrington Meyer said loneliness could worsen during economic downturns because people are less likely to spend on social outings.

That's why a holistic retirement strategy, or what Joseph Coughlin, the director of the Massachusetts Institute of Technology AgeLab, calls "longevity planning," is so important.

"Yes, it's about how much money you've saved — but it's also about all those other little things that make you smile and contribute to quality of life," he previously told BI. "That has to be planned as much as your 401(k) or whether you've had your annual checkup."

Harrington Meyer said that community is a key part of physical and mental health, especially during an economic downturn.

"What's going to be most important to you?" she said. "And then try to build your retirement around that."

Do you have a story to share about retirement? Reach out to this reporter via email at [email protected] or on Signal at alliekelly.10.

• The US government will require all federal retirement applications to be submitted online starting June 2.
• For decades, it has processed retirement paperwork in a converted salt mine in Pennsylvania.
• Elon Musk has targeted the mine through DOGE, calling the old system "crazy" and inefficient.

The US government said it's finally bringing federal retirement into the digital age and leaving behind one of the strangest government facilities still in operation.

In a major shift announced on Monday, the Office of Personnel Management (OPM) said that it will begin processing all new federal retirement applications digitally starting June 2.

Paper applications will no longer be accepted from July 15, ending a 50-year bureaucratic tradition.

"Retirement from federal service is finally entering the digital age," said OPM interim director Chuck Ezell. He called the move a "transformative step that honors the service of federal employees" with a retirement process "worthy of the 21st century."

For decades, the federal government has stored and processed retirement paperwork in a converted mine 230 feet below Boyers, Pennsylvania.

With more than 400 million records housed in 26,000 filing cabinets, the process was slow, manual, and reliant on the elevator's shaft — a system that Elon Musk described as "insane."

"The elevator breaks down sometimes, and nobody can retire," Musk said at a White House press conference in February.

Musk, who leads the Department of Government Efficiency, has been one of the loudest critics of the system, calling the paper-based process a symbol of government inefficiency and saying the aim was to "rightsize" federal bureaucracy.

Federal retirement processing has long been a bottleneck, capping out at roughly 10,000 applications a month.

In February, OPM released a promotional video showing that, under a DOGE challenge, it had successfully processed a retirement application digitally in just two days without printing a single page.

Now, with the launch of the Online Retirement Application (ORA) system, OPM says retirement will be faster, more accurate, and less costly to taxpayers.

But the modernization effort may have consequences. The limestone mine, a Cold War-era facility that employs hundreds in rural western Pennsylvania, could face an uncertain future.

In February, a senior OPM source told Business Insider that many employees feared losing their jobs and that shutting down the mine would devastate the local economy.

OPM didn't immediately reply to Business Insider's request for comments made outside working hours.

• Frich CEO Katrin Kaurov highlights the common financial pitfalls many Gen Zers face.
• Her experience as a young model taught her financial independence early.
• Kaurov says common errors include relying on buy-now-pay-later apps, and waiting too long to start investing.

Money mistakes can start early, and Gen Zers are at risk of making some big errors, according to Katrin Kaurov, the CEO and cofounder of social financial platform Frich.

She says modeling between the ages of 14 and 24 taught her to manage her money in a way many that age do not have to.

"I would spend three months in Milan, three months in London, and three months in Hong Kong," Kaurov told Business Insider. "So I basically had to become financially independent and be an adult at the age of 14, 15, 16 when everyone else was going to parties."

When she moved to New York in her 20s, Kaurov realized this wasn't the norm. She saw her friends flounder when it came to their finances. They had no clue how to manage their money, yet seemed to be living lavish lives on social media.

Kaurov and her friend Aleksandra Medina founded Frich in response to what they saw, aiming to help young people learn "radical transparency and honesty" around money.

"Money shouldn't be lonely and sad and anxiety-inducing," Kaurov said. "We know that money is behind every decision that you make in life, and it doesn't have to be scary."

Here are some of the biggest mistakes Kaurov thinks Gen Zers are making, and what they can do to fix them.

1. Believing everything on social media

Social media, especially TikTok, is full of financial advice. Not all of it is good.

Kaurov said that while TikToks and Instagram Reels are great for opening up the conversation about money, much is "not really verified."

"You see a 17-year-old TikTok who is like, this is how I built a seven-figure business overnight, I'm 17 and I'm already retired. I think it creates very unrealistic portrayals of how people are managing money," she said. "It creates an idea that Gen Z has it together with money, when in reality, most people don't."

Young people shouldn't compare themselves to these posts, Kaurov said, and instead think about their own goals and aspirations.

2. Not getting real about credit card debt

Gen Zers are racking up a lot of credit card debt. They need to get real about this if they're going to face all of their challenges, Kaurov said, such as saving enough for a down payment on a house.

Social media, again, plays a part here. "Especially in cities like New York or London, it just seems like everyone is having dinners out every night and they go on these amazing trips," she said. "It just makes you wonder, wait, why am I always broke? Am I doing something wrong?"

You never see whether your peers are in debt, "which most of them are," Kaurov said.

"You never really see the truth. Maybe their card is getting declined at the restaurant."

3. Making budgets too restrictive

Kaurov said people can create budgets with too much enthusiasm and optimism for how little money they will spend from month to month.

She said a budget should be about creating a realistic guideline for spending and saving — and if it's too restrictive, then rethink it. "Trial and error is crucial and will allow people to find what kind of budget works best for them."

4. Not setting aside enough time

Kaurov recommends young people set aside about 30 minutes a week for a "money date."

"The same way we review our fitness goals and our career goals," she said. "Review what you're doing with money, what are your goals, where are you going?

"Having a money date when you actually review what you're spending on, and go step by step."

5. Reliance on BNPL apps

Buy-now-pay-later (BNPL) services such as Klarna and Affirm have made it easier than ever to spend.

Kaurov warned that relying on them can be catastrophic. "Recently, I went to a bar and I saw that you could pay for your drink with Afterpay," she said. "I was essentially taking a micro loan to have a drink."

It's a sign that things have gone too far, Kaurov said. "That is one thing that I would really highlight for people to be careful."

6. Waiting too long to start investing

When it comes to investing, "You just need to get started," Kaurov advised.

She waited years to start investing, but said it doesn't have to be daunting.

Kaurov said she started micro-investing — setting up automatic investments every week — and it only took about five minutes.

"Things are not as hard and scary as they look," she said.

Kaurov added that being in your 20s really works in your favor because even small contributions, like $50 a month, add up over time.

"I always like to compare that to running a marathon. You're never going to do it on day one."

• Based on seven metrics, Bankrate found that Tennessee is the easiest state to save money.
• It ranked states using tax burdens, cost of living, and other measures.
• Saving money can be easier in the South and tougher in Hawaii and the Northeast.

It can be tougher to save money in the Northeast than in the South or Midwest, a recent Bankrate analysis found.

Bankrate identified how easy it is to save money across the US using household income growth, tax burdens, and other measures that can affect one's ability to put away money.

"The lower the tax rates, the more likely you're going to be to save, and the ability to save is more important than your ability to actually earn in some of those money markets or CDs," Stephen Kates, a financial analyst for Bankrate, told Business Insider.

Bankrate found Tennessee to be the easiest state to save in, followed by Missouri and Texas. Tennessee and Texas don't have income taxes. Kates said Tennessee also did well for its local economy and employment growth rate.

"Southern states, Midwestern states, they have got the lower cost of living," Kates said. "Some of them have the lower taxes or no taxes, and that does go a long way."

You can hover over the map below to see how each state ranked, where 50 means it's the toughest state to save. We also included the figures Bankrate used to determine the ranking.

Many Americans have already migrated South to take advantage of a cheaper cost of living. Vered DeLeeuw moved from California to Memphis, Tennessee, and enjoyed the live music scene, a more relaxed life, and the area's affordability.

"Groceries, restaurants, and even utilities are less expensive and Tennessee has no state income taxes," DeLeeuw told Business Insider. "Having a lower cost of living enables us to save significantly more each month compared to in California, where we could barely save anything."

While it can be easier to build up savings in the South, Bankrate found Hawaii to be the hardest state to save money in. New Jersey and California were also challenging states.

California's high cost of living and taxes can make it relatively harder to save money, Bankrate found. "It hurts the real income growth rate over time," Kates said.

Fabiana Muñoz, a freelance writer and author, moved to Florida after living in different places in California, including San Francisco.

"While paying far too much to rent just one room, I struggled to picture myself building a life here in the long run," Muñoz wrote about San Francisco.

Danielle-Ann Kealohilani Rugg, who moved back to Hawaii from Oregon, told Business Insider Hawaii's cost of living is a con. She said rent in Oregon for a three-bedroom, two-bath home with a yard was $1,500, while her rent in Hawaii "for a slightly larger home" was $3,550.

"I may earn more money in Hawaii, but it's offset by the cost of living in Hawaii being much greater than in Oregon," she said.

Living in a state where it's harder to save doesn't mean it's impossible to do so. Still, Kates said you have to prioritize saving in your budget. Kates said having a direct deposit to your savings or investment account can help with being disciplined and consistent.

Kates said there are other factors beyond saving money that people think about when choosing where to live, such as how close a location is to family or things that are important to someone's lifestyle.

"If people are thinking about, 'Where do I want to live? How do I want to live?' It's important to think about can you get a job? Is that job going to have the ability for my income to grow? Am I going to be able to save? But you want to be able to, outside of that, have a good lifestyle. For different people that may involve different things," Kates said.

Do you have a moving, cost of living, or saving money story to share? Reach out to this reporter at [email protected].