Nevada senior citizens’ incomes tops in national survey

When it comes to retirement income, people 65 and older in Nevada fare much better than their peers in other states, a survey released Monday shows.

A study by personal finance website Interest.com compared the median income for Nevada residents 65 and older to the median income for those ages 45 to 64.

Financial experts say people will need to match 70 percent of their annual working income to retire comfortably.

Older Nevadans fared best in the survey. The median income for Silver State residents ages 65 and older is 70.7 percent that of the median income for those ages 45 to 64.

Most states’ averages don’t meet the 70 percent threshold. Hawaii, at 70.06, is the only other state to top 70 percent.

Analysts believe Nevada is attractive to retirees for its tax climate. The Silver State does not tax pension or Social Security income. Also, Nevada has no state income tax.

“We found that many senior citizens are significantly underfunded and risk running out of money, especially since people are living longer than they used to and may need to support a two- or three-decade retirement,” Interest.com managing editor Mike Sante said.

In the four lowest-ranking states — New Jersey (49.53 percent), Rhode Island (48.20 percent), North Dakota (48.17 percent) and Massachusetts (45.21 percent) — people ages 65 and older are unable to replace even 50 percent of their younger cohort’s incomes.

Nationally, the average income for those 65 and older equals just 57 percent of the average income of 45- to 64-year-olds.

Seniors in Nevada earned on average $39,181, compared with $55,401 for their younger counterparts, U.S. Census Bureau data show. The national average for yearly income for seniors was $35,107.

The study cautioned that Social Security is the primary income source for a majority of Americans — not pensions or retirement savings.

That goes a long way toward explaining why so many seniors have so little money. The average Social Security payment for a retired American worker at the start of last year was $1,230 a month or $14,760 a year.

Contact reporter Chris Sieroty at
csieroty@reviewjournal.com or 702-477-3893. Follow @sierotyfeatures.com.