David Lerner Associates News

Retirement: Top 5 Most Expensive States

Core Facts


Friday, November 1, 2019

The cost associated with retiring is a stark reality we all have to face when we reach retirement age.

Unless you’ve provided for a comfortable retirement, it can be a stressful time. Those little expenses all add up and larger, unexpected items can break the bank.

Inflation is another factor to take into account when doing your retirement planning.  And it can be tricky because it's not a steady increase – it fluctuates. Between 1984 and 1994, it reached as high as 6%. That’s double what folks expected, and if you don’t have enough money set aside, that could be devastating to you and your loved ones.

One of the things to consider is where to live and what the cost of living will be when you retire.

The top 5 most expensive states to retire in are as follows:

1. Hawaii

Hawaii might have plenty of sun, beaches and glorious sunsets, but if you are planning on spending your retirement on these islands in the Pacific, you’ll be paying a premium. Hoising costs are triple the national average and it has the second-highest grocery costs in the U.S.

2. District of Columbia

You will need over $100,000 a year to retire here.That's more than $2 million over a 20-year retirement period.

3. California

This sunny state has the second-highest transport costs in the nation and housing costs are high too. It ain’t cheap to live in California.

4. New York

It should be bo surprise fo find New York on the top five list. There are some very expensive places to live in New York State and you will need at least $1,680,712.35 to cover living expenses for 20 years. For many people, this will be too much, and they will head off to places like Florida to enjoy their golden years.

5. Massachusetts

High housing and transportation costs place Massachusetts in the last spot in the top five most expensive states. Healthcare is also very expensive – second-highest in America today. If you want to retire in Massachusetts, you’ll be looking at $1,657,179.90 for you to be able to do so.

The fact is that most Americans in their 60‘s have not saved nearly enough to be able to afford to retire in any of these states. The estimated median savings for 60-somethings are only $172,000. Thank goodness there are cheaper states to retire in because most folks won’t be able to afford the top five.

 

 

IMPORTANT DISCLOSURES

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC

 

Number of views (155)

^ Top

About

Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Lawrenceville, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website: www.davidlerner.com

^ Top

Contact

Jake Mendlinger
Account Manager
Zimmerman/Edelson
516.829.8374 X 232
jmendlinger@zimmed.com

^ Top

Print

x
  • Connect With Us