How Long Your 401(k) Plus Social Security Benefits Will Last You in New Jersey
Written by
Vance Cariaga
Edited by
Cory Dudak
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Planning for retirement involves a multi-pronged strategy that takes into account how much money you have saved up in a 401(k) or similar plan as well as how much you can expect to get from Social Security. Beyond that, you need to think about how long your retirement income will last — and a lot depends on where you decide to retire.
If you choose to retire in New Jersey, your combination of 401(k) income and Social Security benefits won’t last as long as it would elsewhere in the United States. Those two sources last an average of less than 13 years in New Jersey, according to a GOBankingRates study. That compares to the national average of roughly 15-and-a-half years.
For its study, GBR analyzed data from the U.S. Bureau of Labor Statistics, Social Security Administration and Missouri Economic Research and Information Center. Research focused on average 401(k) withdrawals and Social Security checks, along with average monthly spending on housing, groceries and other essentials. GBR then compared all 50 states and the District of Columbia to find out how long the 401(k)/Social Security combo would last.
West Virginia ranked first at an average of 21.36 years, while Hawaii ranked last at an average of 6.52 years. Rankings tended to correspond with average costs of living, with the most affordable states ranking higher and the least affordable ranking lower.
Most Americans depend on a combination of 401(k) plans and Social Security benefits to fund their retirements, although there are vast differences in the amounts they have available. Social Security checks alone can range from less than $1,000 a month to more than $4,800, while 401(k) balances can range from almost nothing to millions of dollars. Because of these variations, the number of years your retirement income will last varies as well.
New Jersey is one of the more expensive states, which is why it ranked No. 41 on the GBR list. Here’s how the Garden State stacked up against the nation as a whole in different categories:
How Long a 401(k) Will Last with Social Security
- New Jersey Average: 12 years, 9 months, 29 days
- National Average: 15 years, 8 months, 8 days
Annual Expenditures
- New Jersey Average: $65,739.07
- National Average: $57,818
Annual Expenditures After Social Security
- New Jersey Average: $43,301.83
- National Average: $35,421
Annual Groceries Expenditures
- New Jersey Average: $4,964.90
- National Average: $4,797
Annual Housing Expenditures
- New Jersey Average: $15,854.35
- National Average: $11,692
Annual Utilities Expenditures
- New Jersey Average: $4,240.24
- National Average: $4,236
Annual Transportation Expenditures
- California Average: $5,284.07
- National Average: $4,943
Annual Healthcare Expenditures
- California Average: $7,917
- National Average: $7,540
Because these are averages, they don’t apply to everyone. As noted earlier, a lot depends on the size of your 401(k) balance and Social Security payment.
The average 401(k) balance is $272,588 for Americans 65 and older, according to Vanguard data cited by CNN. But the median balance is only $88,488 — which means averages skew much higher because of high balances involving wealthy people.
The average Social Security retirement check was $1,869.77 per month as of June 2024, according to the Social Security Administration. But that figure can go much higher or lower depending how much you paid into the system and when you claim benefits.
Where you decide to retire in New Jersey will also impact how long your retirement income lasts. If you have the typical income, it will last a lot longer in more affordable places like Toms River and Rahway than expensive ones like Hoboken.
More From GOBankingRates
