Virginia Taxpayers Could Bear Financial Brunt of States Retirement Savings Deficiencies
Research reveals that as little $40 a week can bridge savings gap
Overview
Workers in the United States accumulate the vast majority of their retirement savings through employer-based plans, but large gaps in coverage exist. Virginia is no exception, with at least 1 in 3 workers lacking access to a workplace plan.
As in the rest of the country, the number of vulnerable older households in Virginia—those aged 65 and older with less than $75,000 in annual income—is expected to increase by 25% from 2020 to 2035, while the working age population will only grow by 5%. As Virginia workers age, inadequate retirement savings not only will force a reduction in the quality of life for many of them entering their golden years but also will put pressure on public spending and increase taxpayer burdens. According to The Pew Charitable Trusts in consultation with Econsult Solutions Inc., Virginia can expect to spend an additional $11.8 billion from 2020 to 2035 on costs such as Medicaid1 because of insufficient retiree savings.2 This obligation will be borne by an ever-smaller share of the overall population. The aged dependency ratio—the ratio of households age 65 and older to those of working age—is expected to grow by nearly 24%, further stretching the tax base. In 2020, there were 34 households age 65 and over for every 100 households ages 20-64. In 2035, that number will grow to 43 households age 65 and over for every 100 working-age households.
Fortunately, even small savings now could offset the shortfall. The study finds that if households saved just $1,9303 a year—or about $40 a week—over this 15-year period, they could erase the retirement savings gap and allow for a retirement without lifestyle changes driven by inadequate savings.
Select which measure to visualize on the map:
Cumulative taxpayer liability because of insufficient savings, 2021–35
- Accomack County
- Albemarle County
- Alexandria
- Alleghany County
- Amelia County
- Amherst County
- Appomattox County
- Arlington County
- Augusta County
- Bath County
- Bedford County
- Bland County
- Botetourt County
- Bristol
- Brunswick County
- Buchanan County
- Buckingham County
- Buena Vista
- Campbell County
- Caroline County
- Carroll County
- Charles City County
- Charlotte County
- Charlottesville
- Chesapeake
- Chesterfield County
- Clarke County
- Colonial Heights
- Covington
- Craig County
- Culpeper County
- Cumberland County
- Danville
- Dickenson County
- Dinwiddie County
- Emporia
- Essex County
- Fairfax
- Fairfax County
- Falls Church
- Fauquier County
- Floyd County
- Fluvanna County
- Franklin
- Franklin County
- Frederick County
- Fredericksburg
- Galax
- Giles County
- Gloucester County
- Goochland County
- Grayson County
- Greene County
- Greensville County
- Halifax County
- Hampton
- Hanover County
- Harrisonburg
- Henrico County
- Henry County
- Highland County
- Hopewell
- Isle of Wight County
- James City County
- King and Queen County
- King George County
- King William County
- Lancaster County
- Lee County
- Lexington
- Loudoun County
- Louisa County
- Lunenburg County
- Lynchburg
- Madison County
- Manassas
- Manassas Park
- Martinsville
- Mathews County
- Mecklenburg County
- Middlesex County
- Montgomery County
- Nelson County
- New Kent County
- Newport News
- Norfolk
- Northampton County
- Northumberland County
- Norton
- Nottoway County
- Orange County
- Page County
- Patrick County
- Petersburg
- Pittsylvania County
- Poquoson
- Portsmouth
- Powhatan County
- Prince Edward County
- Prince George County
- Prince William County
- Pulaski County
- Radford
- Rappahannock County
- Richmond
- Richmond County
- Roanoke
- Roanoke County
- Rockbridge County
- Rockingham County
- Russell County
- Salem
- Scott County
- Shenandoah County
- Smyth County
- Southampton County
- Spotsylvania County
- Stafford County
- Staunton
- Suffolk
- Surry County
- Sussex County
- Tazewell County
- Virginia Beach
- Warren County
- Washington County
- Waynesboro
- Westmoreland County
- Williamsburg
- Winchester
- Wise County
- Wythe County
- York County
From a 2020 baseline, Accomack County can expect to see the following as a result of an aging population through 2035 (and as compared to statewide results):
or $126 a month
In 2035, on average, Accomack County’s vulnerable older households can expect an annual income shortfall of $6,260 due to insufficient savings. Without new saving, county taxpayers will need to pay a cumulative $3,140 from 2021 to 2035 to maintain existing social services to older residents. The burden is exacerbated by the fact that the aged dependency ratio—the number of aged 65 and older households to households aged 20-64—will rise by 42%, meaning an increasingly smaller percentage of the population will bear the cost.
However, household savings of just $1,510 a year—$126 a month—over this period can erase the gap and allow for a retirement without lifestyle changes driven by inadequate savings.
Select counties or cities to filter the table.
| City or county | Taxpayer burden | Vulnerable household increase | Dependency ratio increase | Average income shortfall | Additional savings required |
|---|---|---|---|---|---|
| Virginia |
4,810
|
25
|
24
|
8,010
|
1,930
|
| Accomack County |
3,140
|
16
|
42
|
6,260
|
1,510
|
| Albemarle County |
7,710
|
29
|
12
|
7,590
|
1,830
|
| Alexandria |
6,170
|
60
|
25
|
6,800
|
1,640
|
| Alleghany County |
2,800
|
0
|
25
|
8,120
|
1,960
|
| Amelia County |
2,770
|
36
|
32
|
6,840
|
1,650
|
| Amherst County |
2,710
|
9
|
26
|
8,100
|
1,960
|
| Appomattox County |
2,570
|
36
|
26
|
6,900
|
1,670
|
| Arlington County |
6,830
|
13
|
10
|
8,280
|
2,000
|
| Augusta County |
3,310
|
25
|
21
|
7,160
|
1,730
|
| Bath County |
4,170
|
8
|
33
|
7,210
|
1,740
|
| Bedford County |
3,690
|
28
|
32
|
7,670
|
1,850
|
| Bland County |
2,130
|
-13
|
14
|
7,570
|
1,830
|
| Botetourt County |
4,430
|
14
|
24
|
8,840
|
2,140
|
| Bristol |
4,120
|
-13
|
3
|
6,820
|
1,650
|
| Brunswick County |
2,040
|
3
|
23
|
6,800
|
1,640
|
| Buchanan County |
2,070
|
-8
|
35
|
5,730
|
1,380
|
| Buckingham County |
1,690
|
23
|
23
|
6,520
|
1,580
|
| Buena Vista |
2,020
|
-5
|
-5
|
6,330
|
1,530
|
| Campbell County |
3,060
|
9
|
17
|
7,850
|
1,900
|
| Caroline County |
2,790
|
28
|
11
|
7,480
|
1,810
|
| Carroll County |
2,170
|
9
|
21
|
7,160
|
1,730
|
| Charles City County |
3,350
|
30
|
33
|
8,240
|
1,990
|
| Charlotte County |
2,250
|
7
|
28
|
7,000
|
1,690
|
| Charlottesville |
4,810
|
55
|
33
|
5,460
|
1,320
|
| Chesapeake |
3,820
|
42
|
39
|
7,400
|
1,790
|
| Chesterfield County |
4,560
|
41
|
21
|
8,990
|
2,170
|
| Clarke County |
5,400
|
19
|
35
|
7,850
|
1,900
|
| Colonial Heights |
5,710
|
13
|
14
|
8,820
|
2,130
|
| Covington |
3,240
|
13
|
28
|
7,570
|
1,830
|
| Craig County |
2,290
|
13
|
35
|
7,120
|
1,720
|
| Culpeper County |
4,100
|
40
|
25
|
7,190
|
1,740
|
| Cumberland County |
2,050
|
4
|
12
|
8,400
|
2,030
|
| Danville |
3,780
|
-4
|
24
|
7,040
|
1,700
|
| Dickenson County |
1,780
|
-12
|
15
|
5,860
|
1,420
|
| Dinwiddie County |
2,580
|
10
|
14
|
7,980
|
1,930
|
| Emporia |
4,140
|
-14
|
10
|
13,400
|
3,240
|
| Essex County |
3,880
|
16
|
8
|
6,480
|
1,560
|
| Fairfax |
7,830
|
20
|
23
|
7,790
|
1,880
|
| Fairfax County |
7,050
|
23
|
16
|
10,130
|
2,450
|
| Falls Church |
10,050
|
0
|
4
|
10,330
|
2,500
|
| Fauquier County |
7,130
|
24
|
32
|
8,210
|
1,980
|
| Floyd County |
3,470
|
10
|
16
|
7,920
|
1,910
|
| Fluvanna County |
3,320
|
28
|
19
|
5,810
|
1,400
|
| Franklin |
3,440
|
-17
|
7
|
9,870
|
2,380
|
| Franklin County |
3,020
|
20
|
15
|
7,140
|
1,720
|
| Frederick County |
4,400
|
35
|
28
|
7,350
|
1,780
|
| Fredericksburg |
5,610
|
24
|
9
|
6,660
|
1,610
|
| Galax |
4,390
|
-1
|
14
|
6,740
|
1,630
|
| Giles County |
2,650
|
4
|
18
|
7,490
|
1,810
|
| Gloucester County |
3,570
|
29
|
39
|
7,320
|
1,770
|
| Goochland County |
9,820
|
40
|
34
|
7,170
|
1,730
|
| Grayson County |
1,830
|
7
|
52
|
7,380
|
1,780
|
| Greene County |
3,330
|
49
|
42
|
5,900
|
1,420
|
| Greensville County |
2,160
|
9
|
23
|
7,840
|
1,890
|
| Halifax County |
2,710
|
-5
|
21
|
7,640
|
1,850
|
| Hampton |
3,010
|
21
|
40
|
7,530
|
1,820
|
| Hanover County |
5,670
|
22
|
41
|
9,390
|
2,270
|
| Harrisonburg |
3,220
|
24
|
5
|
7,430
|
1,790
|
| Henrico County |
5,280
|
28
|
22
|
8,570
|
2,070
|
| Henry County |
2,470
|
8
|
36
|
7,530
|
1,820
|
| Highland County |
2,700
|
32
|
39
|
4,860
|
1,170
|
| Hopewell |
2,350
|
9
|
20
|
6,860
|
1,660
|
| Isle of Wight County |
3,680
|
27
|
40
|
7,130
|
1,720
|
| James City County |
6,930
|
86
|
25
|
6,250
|
1,510
|
| King and Queen County |
2,400
|
8
|
23
|
7,120
|
1,720
|
| King George County |
4,170
|
47
|
31
|
6,220
|
1,500
|
| King William County |
3,200
|
32
|
22
|
7,750
|
1,870
|
| Lancaster County |
5,260
|
26
|
13
|
4,710
|
1,140
|
| Lee County |
1,460
|
0
|
3
|
6,110
|
1,480
|
| Lexington |
3,180
|
-20
|
-12
|
8,510
|
2,060
|
| Loudoun County |
7,550
|
63
|
75
|
10,820
|
2,610
|
| Louisa County |
3,740
|
47
|
24
|
6,590
|
1,590
|
| Lunenburg County |
1,800
|
9
|
17
|
6,600
|
1,600
|
| Lynchburg |
3,290
|
13
|
-4
|
6,350
|
1,530
|
| Madison County |
6,330
|
16
|
22
|
7,090
|
1,710
|
| Manassas |
3,960
|
41
|
34
|
9,720
|
2,350
|
| Manassas Park |
3,530
|
58
|
47
|
9,130
|
2,200
|
| Martinsville |
2,840
|
0
|
35
|
6,970
|
1,680
|
| Mathews County |
3,350
|
8
|
19
|
7,530
|
1,820
|
| Mecklenburg County |
3,640
|
9
|
21
|
6,610
|
1,600
|
| Middlesex County |
3,560
|
16
|
11
|
7,240
|
1,750
|
| Montgomery County |
3,140
|
41
|
17
|
6,260
|
1,510
|
| Nelson County |
14,020
|
36
|
9
|
5,780
|
1,400
|
| New Kent County |
4,230
|
33
|
42
|
8,840
|
2,130
|
| Newport News |
3,130
|
30
|
29
|
6,830
|
1,650
|
| Norfolk |
2,880
|
29
|
24
|
6,470
|
1,560
|
| Northampton County |
3,690
|
9
|
27
|
5,840
|
1,410
|
| Northumberland County |
3,600
|
16
|
9
|
5,080
|
1,230
|
| Norton |
4,400
|
-14
|
9
|
5,980
|
1,440
|
| Nottoway County |
2,280
|
23
|
27
|
6,530
|
1,580
|
| Orange County |
4,720
|
35
|
14
|
6,760
|
1,630
|
| Page County |
2,610
|
16
|
25
|
6,550
|
1,580
|
| Patrick County |
2,120
|
10
|
41
|
6,750
|
1,630
|
| Petersburg |
2,200
|
24
|
26
|
6,930
|
1,670
|
| Pittsylvania County |
2,310
|
17
|
26
|
7,150
|
1,730
|
| Poquoson |
4,380
|
-15
|
21
|
10,500
|
2,540
|
| Portsmouth |
2,490
|
23
|
28
|
6,770
|
1,630
|
| Powhatan County |
4,540
|
44
|
46
|
8,500
|
2,050
|
| Prince Edward County |
2,470
|
46
|
13
|
4,920
|
1,190
|
| Prince George County |
2,680
|
81
|
61
|
6,230
|
1,510
|
| Prince William County |
4,520
|
72
|
41
|
8,900
|
2,150
|
| Pulaski County |
2,950
|
8
|
21
|
6,720
|
1,620
|
| Radford |
1,740
|
8
|
-1
|
8,170
|
1,970
|
| Rappahannock County |
6,450
|
10
|
11
|
5,200
|
1,260
|
| Richmond |
4,570
|
19
|
12
|
6,930
|
1,670
|
| Richmond County |
3,110
|
15
|
27
|
7,550
|
1,820
|
| Roanoke |
3,610
|
16
|
17
|
6,580
|
1,590
|
| Roanoke County |
4,510
|
3
|
13
|
8,920
|
2,150
|
| Rockbridge County |
4,060
|
26
|
29
|
6,730
|
1,630
|
| Rockingham County |
4,140
|
36
|
27
|
7,380
|
1,780
|
| Russell County |
2,060
|
0
|
32
|
6,610
|
1,600
|
| Salem |
4,860
|
7
|
18
|
7,460
|
1,800
|
| Scott County |
1,990
|
0
|
18
|
6,970
|
1,680
|
| Shenandoah County |
3,830
|
22
|
10
|
7,160
|
1,730
|
| Smyth County |
2,290
|
0
|
20
|
7,240
|
1,750
|
| Southampton County |
2,410
|
28
|
50
|
6,540
|
1,580
|
| Spotsylvania County |
4,360
|
42
|
32
|
8,170
|
1,970
|
| Stafford County |
4,170
|
40
|
46
|
9,580
|
2,320
|
| Staunton |
3,850
|
4
|
16
|
7,920
|
1,910
|
| Suffolk |
3,390
|
46
|
31
|
6,490
|
1,570
|
| Surry County |
3,260
|
20
|
40
|
6,840
|
1,650
|
| Sussex County |
1,930
|
15
|
26
|
7,220
|
1,750
|
| Tazewell County |
2,730
|
-8
|
7
|
6,710
|
1,620
|
| Virginia Beach |
4,090
|
45
|
39
|
7,310
|
1,770
|
| Warren County |
3,660
|
38
|
29
|
7,050
|
1,700
|
| Washington County |
3,470
|
13
|
16
|
6,790
|
1,640
|
| Waynesboro |
3,930
|
8
|
8
|
6,910
|
1,670
|
| Westmoreland County |
2,910
|
9
|
11
|
5,660
|
1,370
|
| Williamsburg |
6,210
|
23
|
-2
|
5,780
|
1,400
|
| Winchester |
5,230
|
25
|
15
|
6,170
|
1,490
|
| Wise County |
2,000
|
-3
|
4
|
5,820
|
1,410
|
| Wythe County |
3,290
|
14
|
21
|
6,970
|
1,680
|
| York County |
4,820
|
16
|
29
|
8,850
|
2,140
|
Notes
1. Program spending includes Medicaid (long-term care, general Medicaid services, payment for the Medicare drug program, and payment for Medicare Part A and B premiums); the Auxiliary Grant program; the Virginia Public Guardianship and Conservator Program; additional senior-targeted programs (the Virginia Adult Services Program, Adult Protective Services, the Older Americans Congregate Nutrition Program and Home-Delivered Nutrition Programs, and additional Aging Services sub-programs offered by the Department for Aging and Rehabilitative Services).
2. Sufficient income for residents age 65 and over is defined as 75% of their annual working age (50-64) income, with a minimum retirement income of the federal poverty level. Incomes above $75,000 for older residents are considered sufficient regardless of the proportion of working-age income replaced.
3. All dollar amounts in this publication are in 2020 dollars and do not account for inflation.
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