This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Retiring To Hawaii? Consider Saving A Little Extra

What's the difference between a retiree in Hawaii and a retiree in Mississippi? It sounds like the start of a joke, but the punchline is hardly funny: The retiree in Mississippi is likely to have a significantly shorter and less-healthy retirement than the one in Hawaii.

According to a report published this month by the Centers for Disease Control and Prevention (CDC), 65-year-old residents of the Aloha State can expect an additional 16.2 years of healthy living, giving them the highest "healthy life expectancy" (HLE) in the nation. Meanwhile, 65-year-olds in Mississippi can expect an HLE of only 10.8 years after age 65.

The CDC statistics provide some striking facts about the health and wellness of the aged across the U.S. But for younger workers planning a retirement savings strategy, the findings may also offer useful insights on what exactly what they're saving for.

States with the highest and lowest healthy life expectancies

The CDC calculated HLE figures for each of the 50 states and the District of Columbia using data from 2007 through 2009. These figures gauge how many more years of "good" health an individual can expect at age 65. The study used self-reported health-status data to gauge whether respondents were in good health.

Eight states posted HLEs of more than 15 years:

  • Hawaii: 16.2 years
  • Connecticut: 15.7 years
  • Minnesota: 15.6 years
  • Florida: 15.4 years
  • Colorado: 15.3 years
  • Vermont: 15.2 years
  • New Hampshire: 15.1 years
  • Washington: 15.1 years

While Mississippi holds the dubious distinction of having the lowest HLE at 10.8 years, many of its neighbors didn't fare much better. Seniors based in Kentucky and West Virginia have HLEs of 11 years, just behind the figure for Alabamans at 11.1 years.

The impact on retirement savings

For workers unsure of how much they should save for retirement, the CDC data may hold some useful clues -- particularly when it comes to gauging how many of their last years may be in poor health.

"Where you live in the United States shouldn't determine how long and how healthy you live -- but it does, far more than it should," said CDC Director Tom Frieden in a written statement. "Not only do people in certain states and African-Americans live shorter lives, they also live a greater proportion of their last years in poor health."

While workers should be saving enough to enjoy their healthy retirement years, it is also important for them to consider how long they may have poor health.

While the HLE for 65-year-olds in Mississippi is 10.8 years, the overall life expectancy is 17.5 years. In Hawaii, the overall life expectancy is 21.3 years. That means residents of those states can expect 6.7 years or 5.1 years, respectively, of poor health. Planning accordingly may mean storing away additional savings or considering long-term-care insurance to deal with these years.

Also, those in states with shorter expectancies shouldn't use it as an excuse to save less. The CDC figures are only statewide averages, and retirement planning is done most effectively on a personalized basis.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs