The Social Security funding breakdown is less than a decade away — and may significantly change the retirement landscape in Wisconsin if lawmakers don’t act to reverse it.
The current Social Security trust funds will be able to pay out 100% of benefits until 2034, which is one year sooner than earlier predicted, according to new federal projections. After that point, the depleted funds will only be able to pay out a portion of benefits to retirees.
By 2099, the fund’s trustees said the projected shortfall in retirement benefits will be $25.1 trillion.
Given uncertainty around the future of Social Security funding, personal finance site GOBankingRates estimated how much it will take to retire in each state without Social Security benefits. In Wisconsin, it’s well over $1 million if you’re hoping to retire at 60.
Here’s how much you’ll need to retire without Social Security in Wisconsin:
How much will you need to retire in Wisconsin without Social Security?
Without Social Security payments, here’s how much you need to retire in Wisconsin, according to GOBankingRates:
About 18% of Wisconsin’s population is over 65, the website reported.
What is the annual cost of living in Wisconsin?
The study also estimated people will need about $84,485 annually to live comfortably in Wisconsin.
In comparison, a previous GOBankingRates study found annual cost of living with Social Security income would be about $33,021 in Wisconsin.
How does retirement cost in Wisconsin compare to neighboring states?
Aside from Minnesota, it’s more expensive to retire without Social Security in Wisconsin than any of its neighboring states, the study found.
For those hoping to retire at 60 without Social Security, it’ll cost you $1,594,716 in Illinois; $1,475,595 in Michigan; $1,427,463 in Iowa; and $1,766,414 in Minnesota. Only Minnesota requires more in savings than Wisconsin.
When it comes to retirement at 70, you’ll need more saved in Wisconsin than any neighboring state. The study found retirement without Social Security at that age will cost $797,358 in Illinois; $737,797 in Michigan; $713,731 in Iowa; and$883,207 in Minnesota.
This article originally appeared on Milwaukee Journal Sentinel: How much will retirement in Wisconsin cost without Social Security?
Reporting by Maia Pandey, Milwaukee Journal Sentinel / Milwaukee Journal Sentinel
USA TODAY Network via Reuters Connect
