Updated

Updated · Coloradoan · Jul 13

Investopedia Puts Colorado Retirement Nest Egg at $880,000, Below $898,000 U.S. Average

Updated

Updated · Coloradoan · Jul 13

Investopedia Puts Colorado Retirement Nest Egg at $880,000, Below $898,000 U.S. Average

Q: How much more must you save for retirement to offset the projected 22% cut in Social Security benefits?

To offset a projected 22% Social Security cut, the average retiree would need to replace about **$5,200 to $5,500 a year** in lost income, which translates to roughly **$130,000 to $138,000 more in retirement savings** under the same 4% withdrawal rule used in the Investopedia study. Here’s the math. The study assumes Social Security covers about **$23,700 a year** of retirement spending. A **22% cut** would reduce that by about **$5,214 annually**. Using the 4% rule, replacing $5,214 a year would require about **$130,350** in extra savings. Using the separate estimate of an average monthly benefit near **$2,071 to $2,083**, a 22% cut equals about **$456 to $458 a month**, or roughly **$5,500 a year**, implying about **$137,500** in added savings. Applied to Colorado, where Investopedia estimates a single retiree needs **$880,000**, the target would rise to roughly **$1.01 million** if benefits were cut by 22% and all else stayed the same. Nationally, the average target of **$898,000** would rise to about **$1.03 million**. This is a rough planning estimate, not a personal prescription. The actual amount depends on your own expected benefit, retirement age, lifespan, taxes, investment returns, and whether you have pensions or other income. Financial planners generally advise treating Social Security as a base layer of income and building enough private savings to handle a reduced benefit.

2 articles · Updated · Coloradoan · Jul 13

$880,000 is the estimated nest egg a single person needs to retire comfortably in Colorado at age 65, according to an Investopedia state-by-state study.
The estimate assumes annual spending of $58,800 and Social Security income of $23,700, leaving a $35,100 gap to be covered from savings.
Investopedia based the calculation on the 4% rule, which assumes retirees withdraw 4% in the first year and adjust for inflation over a 30-year retirement.
Colorado sits near the middle nationally: New Jersey and Hawaii top the list at $1.02 million, while North Dakota is lowest at $640,000.
The study factors in costs such as housing, food and transportation, but excludes pensions, which could reduce the savings needed for some retirees.