Notes: The change in dependency ratio measures how households with people at least age 65 compare with those of working age in 2040 relative to 2020. Average income shortfall measures how far households’ current savings fall below an “income replacement” target of 75% of pre-retirement income. The lower boundary of the replacement level is the federal poverty level, while any income above $75,000 is considered sufficient even if it falls short of the 75% target. State costs represent the sum of projected state social assistance spending from 2021 to 2040 attributable to the average income shortfall that would be avoided if workers accumulated sufficient savings.

Source: Study by Econsult Solutions conducted May 2023