Brush Stroke

Top 12] Best and Worst States for Pensions

By: Mary Jones

Traveling Knowledge

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The pension long has been a standard part of retirement for many Americans, particularly for public sector employees like police officers and teachers.

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Louisiana

Louisiana’s per-capita unpaid pension liabilities are close to $20,000. Still, the total is less than $90 billion and had a year-over-year gain of less than 9 percent.

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Washington

The Evergreen State has unfunded pension liabilities of $15,123 per capita for a total of $115 billion. Retirees in Bellevue, Washington, who bought a home there years ago are reaping the benefits now.

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Michigan

Michigan made headway in reducing its unfunded pensions, with the amount dropping by 2.18% — or $3 billion from 2019 to 2020

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Tennessee

At just $6,435, the per-capita unfunded pension liabilities in Tennessee are the lowest the country.

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Colorado

Coloradans’ pensions might not be as solid as they would like, but if they own their own home, they might have some flexibility — and some equity.

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Texas

Texas had $401 billion in unfunded pension promises in 2020, up $100 million – or 33% — from 2019. Still, Odessa, Texas, is one of the best cities to retire on a budget of $1,500 a month.

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North Dakota

North Dakota’s $12 billion in unfunded pensions for 2020 is the third-lowest total among all 50 states, but that was an increase of nearly 37% from 2019, the third-largest proportional increase in the nation.

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Kentucky

The Bluegrass State has $102.4 billion in unfunded pension liabilities. Its per capita rate of $22,914 is the 10th highest in the U.S. A previous GOBankingRates study found that if you retire in Kentucky, you’ll need about $663,000, plus your Social Security payments, to fund your retirement.

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Utah

While Utah’s $37 billion in unfunded pension liabilities is larger than only North Dakota’s among the bottom five, it’s up 52.4% from 2019. It costs $752,895, after Social Security, to comfortably retire in Utah – almost $100,000 more than in Kentucky.

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New Jersey

With $254.4 billion in unfunded pensions, New Jersey is one of six states with liabilities of more than a quarter of a trillion dollars. It’s up more than 29% from 2019.

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Does the same hold true today? Private companies rarely offer pensions anymore, and states are struggling with pension commitments they made decades ago. The relative security of a pension is tied to the well-being of the government that offers it, and a great many U.S. states currently have unfunded pension liabilities.

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