Many Ohioans not prepared for retirement
Fewer than half of Ohioans have a retirement plan where they work, making retirement security a risky proposition for younger generations of employees.
The state of Ohio scored five on a scale of 10 in the 2015 Financial Security Scorecard report, released last week by the National Institute on Retirement Security. Nearly every state fell far short in meeting their economic needs in retirement, NIRS said.
Ohio ranked near the middle of the pack, with average future retiree incomes, and retiree costs and labor market opportunities for older adults that were slightly above average.
Each state scorecard measures the relative performance of the 50 states and the District of Columbia in three key areas: anticipated retirement income; major retirement costs, such as housing and healthcare; and labor market conditions for older workers.
Wyoming, Alaska, Minnesota and North Dakota ranked highest because of their strong labor markets and lower retiree costs. The states that rated lowest were California, Florida and South Carolina. Workers there have less access to retirement plans, lower wages and higher costs after they retire, NIRS said.
You can see the full state list by clicking here. A link to Ohio’s report is available here.
The report stated that Ohioans who have saved for retirement have an average balance less than half of the $55,403 average annual earnings of working Ohioans in 2012. Here is where Ohio stands on a number of retirement measures:
- Retirement plan participation (private sector): 46 percent
- Average DC account balance: $30,345
- Marginal tax rate on pension income: 4 percent
- Medicare out-of-pocket cost per enrollee: $1,745
- Medicaid payments for older beneficiaries: $16,978
- Older households paying at least 30 percent for housing: 32.7 percent
- Older worker unemployment rate: 5.3 percent
- Median hourly wage for older workers: $14.76
Michael Pramik
Michael Pramik is communication strategist for the Ohio Public Employees Retirement System and editor of the PERSpective blog. As an experienced business journalist, he clarifies complex pension policies and helps members make smart choices to secure their retirement.