16 States That Could Be a Major Retirement Blunder By Boomers
Do questions regarding retirement cause you to lose sleep? Where will you retire? How much money do you need to retire? Is one state better than another in terms of financial efficiency? According to the 2022 Report of Consumer Finances, the average family retires with $333,940 and a median of $87,000. Other finances benefit retirement, like investments, income, and social security, but can those income additives, plus the average retirement fund, translate to an affordable retirement in these states?
1. Minnesota
Will you make it in Minnesota? Retired people in the Land of 10,000 Lakes prepare to spend over $54,000 a year to perpetuate the average lifestyle. At that rate, $825,000 sustains a 25-year retirement, and just shy of $1 million sustains a 30-year retirement.
2. New York
Living in New York doesn’t have to be an extreme expense. Housing and the cost of living shift between locations, so living in the rural parts of the state costs less than dwelling in the heart of Manhattan. All that aside, the average retired person spends around $73,000 a year in retirement, creating a 25-year retirement budget of $1.23 million.
3. Rhode Island
Why not spend your golden years in the smallest state in the United States? The Ocean State lures retirees to a land of striking seaside towns and harbors. Arrange to spend around $64,000 annually to match the average retirement quota, or $1.01 million in the first 25 years of Rhode Island-based retirement.
4. Virginia
Close to D.C. and operating as a hybrid town of mountainous and coastal terrain, Virginia summons retirees. Those retiring in this state spend around $58,000 yearly on a loose budget, equating to $926,000 over their 25 years of retirement.
5. Alaska
A study published by GoBankingRates.com reports that retirees headed to Alaska should budget around $1 million for a comfortable retirement in the non-continental U.S. state. The report claims that the average retiree breezes through around $63,000 in income each year, which means a 25-year retirement requires over $1 million.
6. California
California fosters a reputation as an expensive state. Although it is not the most expensive state in the country–that award goes to Hawaii, with the cost of living in Honolulu at 83% higher than the national average–California’s prices fluctuate toward the higher side of the scale. Retirees spend an average of $78,000 a year; therefore, a 25-year retirement requires a little over $1.2 million in funds.
7. Hawaii
Here, we have the most expensive state in the United States. How much does a retirement in this gorgeous state cost? A study finds that an average retiree in Hawaii uses over $103,000 yearly. So, a 20-year retirement in the tropical paradise costs $2 million, a 25-year stint costs $2.05 million, and a 30-year retirement stay costs $2.4 million. Can you afford it?
8. Massachusetts
Massachusetts, home to Boston, Harvard, and the Americanized version of London, hosts new retirees each year. The run-of-the-mill retiree in Massachusetts works through $85,000 each year. Following this number, a sufficient 25-year retirement session costs $1.6 million and almost $2 million for 30 years in Massachusetts.
9. Maryland
Maryland retirees reside below the $70,000-a-year expenditure mark at $66,000. For a fruitful retirement around Baltimore or Ocean City, expect to dole out $1 million for a 20-year period, $1.12 million for a 25-year retirement, and $1.34 million for a 30-year stay in Maryland.
10. New Jersey
Do you prefer to live on the cusp of New York in a state famous for hoagies and Atlantic City? New Jersey retirees should expect to spend around $63,773 a year, totaling $1.05 million for a 25-year retirement. When you add five years to that retirement period, you get a whopping $1.3 million budget needed for a favorable retirement.
11. Washington
Take your retired years up to the western state of Washington. Remarkable lakes and trees weave through this corner of the Pacific Northwest. Constantly referred to as an expensive place to live, Washington also costs retirees a lot of money for a worthwhile retirement. The proposed yearly expenses of a retiree cost $66,895, totaling about $1.1 million for 25 years in the state and $1.3 million for thirty years in the gorgeous location.
12. Connecticut
Connecticut’s prime New England setting is one of the most costly options for retirees. Those in retirement should budget around $65,000 yearly, which translates to spending $1.1 million during 25 years of retirement and $1.3 million for thirty years.
13. Oregon
Another popular Pacific Northwest option for retirees is Oregon – the rainy yet breathtaking climate calls to retirees. If capable of amassing $1.1 million for a retirement fund (one that lasts 25 years), Oregon may be the perfect fit. Folks who retire here spend an estimated $66,000 each year. And if you’re planning on staying 30 years, you’re looking at $1.3 million, the same as Connecticut and Washington.
14. Illinois
Chicagoland, Illinois City, and Peoria all consume space in Illinois. The midwestern state pans out to colossal skyscrapers and a bite of Lake Michigan, making this appealing to retirees yearning for a city feel of a serene retirement. Illinois retirees hand out $53,000 a year in expenses, equaling $787,000 over a 25-year retirement and $946,000 in a 30-year retirement.
15. New Hampshire
New Hampshire retirement rates replicate those of Washington, Oregon, and Connecticut. Each retiree spends around $66,000 a year, creating a 25-year budget of $1.1 million and $1.3 million. Most expensive retirement states require retirees to hold at least $1 million in bank accounts and assets.
16. Texas
How much should a potential retiree budget for a lengthy stay in the Lone Star state? For one year, $53,000 provides a cushion for adjusting to life in retirement. Over the consecutive years, plan for an $800,000 retirement fund over 25 years and $967,000 over 30 years.
Findings from this post.
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