Colorado Has 4th Lowest Retirement Age in the Nation
Want to retire? You're in the right place.
GOBankingRates has determined the realistic retirement age for every state. The Colorado retirement age came in fourth-lowest for the nation at 56 years young.
- Realistic retirement age: 56
- How much savings you need to retire: $908,357
Here's how they calculated the data:
The study began their work based on the assumption that workers that started saving at age 22 followed the 50/30/20 rule — allocating 50% of personal income to necessities, 30% to wants, and 20% to savings.
- GOBankingRates first calculated the median income by age in every state, using Census Bureau data to determine how much people could set aside in savings at various ages.
- Then, GOBankingRates used its findings from January, 2020 study to determine the savings amount needed to comfortably retire in each state.
To find out how long it would take workers in each state to save up to the state’s ideal savings target, GOBankingRates assumed the following:
Of the 20% of income that went into savings, 14% was put in a typical savings account and 6% was put into a 401(k) with a 50% employer match (up to 3%) and the average annual return on investments in the 401(k) was 5%.
Hawaii is by far the worst state for retiring, where you realistically have to be 74 years old. Utah had the youngest retirement age at 53.