Posted on 10/11/2023 5:34:31 PM PDT by Libloather
Senior citizens looking to relocate may want to steer clear of Hawaii as it ranks as the most expensive state to retire to, figures show.
Retirees in the Aloha state require $121,000 to live comfortably, according to study by GoBankingRates - compared to those in Mississippi who need just $55,000.
Washington DC, Massachusetts, California and New York were the next most expensive states to retire to, with an average annual cost of $94,000 across all four.
After Mississippi the four cheapest states were Oklahoma, Alabama, Kansas and Iowa, with an average cost of $57,000 a year.
Across the US, the average annual income required for comfort was $68,000.
Assuming an average inflation rate of 3 percent and that the American entering retirement is now aged 65, and likely to live another 30 years, they would need nearly $3.5million. These figures do not take into account the added bonus of social security payments.
The study considered the cost of groceries, healthcare, housing, utilities and transportation to establish the average income that would be needed to enjoy a comfortable retirement.
After calculating total consumption expenditures, an additional savings buffer was calculated assuming that total expenditures consume 80 percent of a budget with 20 percent left over for savings.
The GOBankingRates study analyzed the expenditures of Americans aged 65 and older based on data from the most recent survey by the Bureau of Labor Statistics.
Spending estimates were then adjusted for each state by scaling each cost category by its corresponding cost of living index score.
(Excerpt) Read more at dailymail.co.uk ...
How much do you REALLY need to retire?
I need to retire VERY much.
That’s why I did.
Congrats. Looking to be there soon.
There are several states that were left off the map, and I’m in one of them. Great!
I cannot imagine retiring to Oklahoma, Alabama, Kansas or Iowa.
Between pensions, SS, investments, cash-money and BEING DEBT FREE for many years BEFORE we retired, we pull in decent money each month...but I sure as H#ll ain’t movin’ to IOWA to prove it, LOL! ;)
I have a BFF who just turned 70. She’s BUILDING a home right now - occupancy in December - and even with the sale of her current home will STILL have a $400K mortgage! At age 70! Aarrgghh!
I just want to shake her!
Alabama is probably where I will move when I retire. Great beach areas, lakes, and forest areas.
Depends on how comfortable you want to live.
Lucky for me I live in one of the cheap living States..the ones who don’t will try to get out of those high cost of living States..they need to stay right where they are, most are Yankees..
Yup. I retired several years ago, debt-free. Your portfolio sounds similar to ours.
Alabama is awesome, especially on the Gulf Coast. You’d get used to the heat and humidity in about three years.
It’s the only way to go! :)
In the lower map, you can click on unlabeled states to reveal their information.
The numbers seem high to me.
I was with 3 childhood friends for a week (last week) in CT. We were all born and raised in Florida. I live in Indiana now. One of my friends said to me, “I know you live in a state that begins with I. Which one is it?”
Is it Iowa? - No.
Is it Illinois? - No.
I finally told her Indiana.
Sometimes I’m very happy I live here in “nowhere”. I can stay hidden for a bit longer than some.
Roll Tide!
Sweet home Alabama.
It is beautiful. But don’t move here. We’re full up.
We are relatively low income. Certainly not below the poverty level, but comfortable. We live in Oklahoma. Our home is a smaller fixer upper, but it’s paid for. Food is high here, and getting higher every day. Taxes are absurdly low. Gas and electric are ~ $300 A month total. Medical expenses are high for us, as we are both on some expensive name brand drugs that cannot be subbed for generics. I wish we could get those meds from Canada.
“Alabama...You’d get used to the heat and humidity in about three years.”
I’ve lived in Florida for 30 years and it remains fit for mosquitos [11 months of 12] and gnats [after heavy rains for two days April-September] but far less so for me.
Inside the article, it is stated that $1.27 million is the average that Americans feel they need to retire. And only 7% of Americans have even that number.
In fact, the average American has only $89,300 saved for retirement ($122,500 for those in their 60s).
Yet most Americans get along just fine in retirement.
Thus this looks to be nothing more than a scare article.
Retired people are just fine so long as they live within their means. Many in fact are perfectly happy to spend their retirement years just visiting friends and family, reading books, catching up on old movies, taking long walks, cooking meals at home, all of which are very inexpensive pursuits.
The notion that you need nearly a six figure annual income to retire comfortably seems totally bogus.
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