Mississippi
Retirement savings gap hits seniors. How to avoid outliving your money
IRS raises 401(k) contribution limits for 2026
IRS increases 401(k) and catch-up contribution limits for 2026, allowing workers to save up to $32,500 for retirement.
Many Americans worry their retirement savings won’t last — and a new report suggests that fear may be justified in Mississippi.
Surveys have shown that Americans fear running out of money in retirement more than they fear death itself. People are living longer, which means retirement lasts longer, and retirement costs are rising.
A new report from CareScout, the long-term care network, finds that the average American at age 65 faces a retirement shortfall of $109,000. That’s the difference between how much income they can expect, from Social Security, savings and other sources, and how much they should plan to spend on the expenses of daily life.
American retirees are likely to outlive their savings in 41 states, according to the data.
The report draws on state-level estimates of life expectancy at age 65 (16 to 20 years, more or less, depending on the state), average retirement benefits, median net worth and expected retirement expenses.
How likely are you to outlive your retirement savings in Mississippi? Here’s what we know about life expectancy, expenses and how much retiring here costs.
Mississippi retirees face a $160K savings gap
The average Mississippi senior can expect about $682,000 in expenses and $521,000 in income in retirement. Projected shortfall: $160,000.
It’s the 13th-largest shortfall in the U.S.
The state has some of the most affordable food costs and home prices in the country, but overall wages are also much lower than the national average.
What’s a realistic retirement age in Mississippi?
Nasdaq studied realistic retirement numbers for each state. For Mississippi, they determined that a realistic retirement age is 61 and recommend having at least $764,676 saved.
Mississippi residents aren’t taxed on income from:
- Social Security benefits
- IRAs
- 401(k)s
- Pensions
- Military benefits
The state income tax is also being phased out.
How long Mississippians live after age 65
Mississippi ranked next-to-last for life expectancy in a CDC list of all 50 states and the District of Columbia. Data from 2022 is the newest available.
The Magnolia State had an average life expectancy of 72.6 years.
For men, Mississippi ranked 51st at 69.5 years. Women ranked 50th with an average life expectancy of 75.7.
At age 65, people in Mississippi are expected to live another 16.7 years, on average. It’s about 15.3 years for men and 17.9 years for women.
Retirement may last longer than you think
American life expectancy is about 79 years. By the time you reach retirement, however, you can expect to live longer than the overall life expectancy figure suggests. A woman of 70, for example, can expect to live to 87.
Many older Americans don’t know how long their own retirement is going to last: in other words, how long they are going to live.
Longevity literacy matters in retirement planning. If your retirement budget assumes you will live to 75, and you make it to 95, you will probably run out of money.
How to make your retirement savings last
Don’t want to outlive your savings? Here are some tips from the experts.
Ways to grow your retirement account faster
One surefire way to build retirement savings is to make aggressive contributions to a workplace retirement account.
The most successful retirement savers typically start saving early, contribute at least 10% of their income to a 401(k)-type account, and save continuously until they retire.
And try not to raid your retirement savings for a household expense. Instead, open an emergency savings account.
How timing Social Security affects your monthly check
The longer you wait to claim Social Security, the larger your monthly benefit checks will be.
Based on the longevity figures above, you’re generally better off claiming Social Security later in life, if you can afford to wait. Ideally, wait until age 70, when your monthly benefit maxes out.
In a 2025 story, USA TODAY explained the math behind that rule of thumb.
Mississippi cities certified for retirement living
There are 13 cities and towns in the Mississippi Hometown Retirement Program, also known as Welcome Home Mississippi.
The program encourages more people to retire in the Magnolia State. It uses no state income tax on retirement income, a tax exemption on the first $75,000 of a home’s true value and no state gift or inheritance taxes as selling points.
Certified cities “maintain high standards and boast many of the qualities and amenities retirees often seek when choosing a retirement destination,” according to the Welcome Home website.
Cities in the program include:
Daniel de Visé covers personal finance for USA Today and writes the Daily Money newsletter.
Bonnie Bolden is the Deep South Connect reporter for Mississippi with USA TODAY Network. Email her at bbolden@usatodayco.com.