New study shows WV ranks 45th nationally in retirement readiness, will a PEIA rate hike add to the struggle?
By Matthew Young, RealWV
This past spring and summer, RealWV examined how West Virginia compares to other states in several key metrics. Among those metrics were categories such as SAT scores, firearm and overdose death-rates, median household income, infrastructure, and healthcare availability. Unfortunately, the Mountain State has consistently ranked at-or-near the bottom in most categories. West Virginia is however the national leader in one very notable category – strip clubs per capita.
While previous research shows West Virginia to have significant room for improvement in most social, economic, educational, and governmental areas, the general elections held earlier this month present an opportunity for fresh leadership at both the state and county levels. And with that fresh leadership simply waiting for 2025’s arrival in a matter of weeks, Mountaineers can be hopeful that measurable improvements are forthcoming.
In addition to the reporting previously done by RealWV, one area that the new crop of lawmakers and state leadership will need to look closely at are West Virginia’s state retirees.
Questions already surround this particular demographic as the state’s retirees face the third potential PEIA (Public Employees Insurance Agency) rate hike in as many years, and lawmakers continuously scramble to secure a permanent funding source for the programs offered. To compound the problem, new research conducted by the financial management firm Empower shows that West Virginians rank 45th in the nation with regard to financial preparedness for retirement.
According to Empower’s research, which was sourced primarily from a 2022 survey conducted by the U.S. Census Bureau – as well as reporting by Cheyenne DeVon of CNBC – the average West Virginian has $174,200 currently saved for retirement. This total includes the full balances from 401(k)s, IRAs, Keogh plans, and private/personal retirement accounts. Only New Mexico, Mississippi, Louisiana, Arkansas, and Alabama residents have lower average retirement savings.
A disclaimer in DeVon’s reporting notes that, “While averages can provide an interesting snapshot of retirement data, they don’t always tell the whole story.”
A state’s cost of living and tax structure, as well as individual lifestyle factors can easily impact a person’s retirement preparedness. And while it is certainly true that $174,200 will go much farther in West Virginia than it will in states like California or New Jersey, factors which are beyond the control of retirees – such as the real possibility of a 49% increase in PEIA premiums over three years – will leave West Virginia’s retirees continuing to struggle.
A series of public hearings have recently been held concerning the PEIA rate hikes, with one final hearing taking place on Thursday, Nov. 21. The hearing will be held at the Culture Center Theatre in Charleston, with registration beginning at 5:30 p.m.
RealWV will provide updates regarding the status of the rate hikes as additional information is made available.
Our previous reporting can be viewed here:
- New study shows West Virginia is 10th most underrated state, leads the nation in strip clubs per capita
- Report shows West Virginia to be the ‘least happy’ state in the nation
- New study shows West Virginia to be among the worst states for infrastructure, attractivity to business
- Research shows West Virginia has lowest SAT scores in the nation, higher firearm death rate than New York and Illinois
- West Virginia’s median household income of $54k ranks 49th in nation+
To complete these reports, RealWV compiled data from a total of 13 different sources, both liberal and conservative in their research. Educational and governmental sources were also utilized, as well as private financial institutions. Our sources include Newsweek, CNBC, Forbes, the Visual Capitalist, How Stuff Works, the National College Board, OnFocus News, Centers for Disease Control, Insider Monkey, americanprogress.org, thrillist.com, Guru 99, and talkelections.org.
