Know where to spend your years of retirement It can be as important a situation as knowing how much you save. In three states in the United States, it would be necessary to spend a six-figure amount annually to live comfortably in your teenage years. Retirement, much more so than most others, according to a recent GOBankingRates analysis. In the states of Hawaii, California, and Massachusetts, the costs of retirement per year, on average, exceeds $100,000 per year, and Hawaii is topping that list with $129,296. Contrary to the retired of West Virginia, who only need $58,190 a year, the lowest level in the entire United States.
During a retirement Over 30 years, the difference in savings required between Hawaii and West Virginia would be more than $1.25 million. These estimates are based on the costs of retirement per year, in average for U.S. citizens over age 65 in each state, using estimates from the Bureau of Labor Statistics for expenditures on food, lodging, transportation, health care, and utilities. A 20% cash reserve was added to this total to ensure that the retired could live “comfortably,” according to the study.
States With Expensive Cost of Living for Retirement
- Hawaii
- Total annual expenses: $107,746
- 20% Comfort Reserve: $21,549
- Annual cost of a comfortable retirement: $129,296
- California
- Total annual expenses: $83,906
- 20% comfort reserve: $16,781
- Annual cost of a comfortable retirement: $100,687
- Massachusetts
- Total annual expenses: $83,501
- 20% comfort reserve: $16,700
- Annual cost of a comfortable retirement: $100,201
The reason the costs of retirement are so high in the aforementioned states is due in large part to housing, which is usually the largest expense in the budgets of American families retired. The three states have one of the largest housing shortages in the country, which has caused prices to increase.
Prices of food products also play an important role, especially in Hawaii, an island state where the cost of importing goods is passed on to consumers. According to the data, the cost per year, average retire comfortably, It is $66,870 in all states of the country. The states where there is still a chance to retire with less than $65,000 per year are largely rural states in the South, where the cost of living tends to be lower.
Some of the Best Retirement Destinations in the USA
- Missouri, of the states with the most affordability, making it one of the top 5 locations for retiring in the United States the previous year. However, the state has problems with the quality of health care, crime and natural disasters.
- South Carolina, is in the top 5 this year, in fourth place in the rankings. The state’s affordability and pleasant climate make it one of the best states to retire this year.
- Georgia, with third place, it’s a state that wasn’t even in the top five the year before. Its position in the top 5 is due to its affordability and warm climate.
- West Virginia, rose to second place this year. The state had the best affordability of the 50 states in the United States. For the second year in a row, with a low cost of living and low tax rates.
- Delaware, subtype of the second-best state to be the best state to retire in 2024, thanks to its top-notch healthcare, low taxes, and in-between climate. Delaware surpassed Iowa to take the big first place in this year’s ranking of the best and worst states to retire while Delaware is a more expensive state to live in, high-quality health care, light tax burden, affordable home insurance, and great weather put it in first place this year. Delaware also scored highly on diversity, well-being, and culture and has a large proportion of residents aged 62 and older compared to its population.”
