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:
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.
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.
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.
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