Know your market: Retirement income ample in DC, not Md., Va.
Several studies have shown that baby boomers are the biggest group of car buyers. But will they continue to be able to afford a new car? A new study from Interest.com shows boomers may be financially unprepared for retirement in Maryland and Virginia.
Financial experts say you will generally need at least 70 percent of your preretirement income once you stop working. If counted with the states, DC is the only one that qualifies besides Nevada. The median income for District residents over age 65 is $47,632, which is 74 percent of preretirement income. Thatês partly because the base for preretirement income in the study is the median income earned from age 45 to 64, and in DC (unlike every state) the highest paid group is instead those age 25 to 44. The studyês author Mike Sante told the Washington Business Journal that federal government pensions are likely another factor.
Maryland residents older than 65 have a median income of $49,494, a mere 56 percent of preretirement income. Although the median income of older Virginians is lower, at $44,440, thatês 59 percent of the stateês preretirement income.Download Bulletin PDF