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October 9, 2014

CT retiree income well below 45-64 age group

Connecticut’s retirement-aged residents earned a median income last year that was little more than half of what residents ages 45-64 took in, according to an analysis by Bankrate-owned mortgage and financial products marketplace Interest.com.

The median income of Connecticut residents ages 45-64 was $84,757, while those 65 and older earned $44,240, or 52.2 percent of the younger set, according to the analysis. That was an improvement of 1.3 percentage points since 2011.

Only three other states — Massachusetts, Minnesota and North Dakota — has wider income gaps than Connecticut.

The website said a general financial planner’s rule of thumb is that a person will need 70 percent of his pre-retirement income in retirement. The wide gap in Connecticut and other states indicates that retirees may be having trouble getting by, and could signal that those approaching retirement age are not saving enough, the website said.

Washington, D.C. retirees had the narrowest gap, earning 74 percent of the age group below them.

Interest.com said that is likely due to the fact that the nation’s capital houses many retired federal employees with pension plans.

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