As important as determining when to retire is determining where to retire.
There’s no escaping the fact that your retirement destination will determine how much you’ll need to pay in taxes, what your living costs will be, and what kind of health care options you’ll have.
There are many factors that contribute to retirement planning, and all of them are important to take into consideration.
Of course, your decision of where to retire will depend on more than just financial matters.
You should, however, ensure your retirement nest egg is large enough to support your needs if you plan to retire in one of these four states.
Hawaii
Hawaii is regarded as one of the worst states in which to retire.
In spite of the fact that the weather is beautiful and the idea of retiring to an island sounds ideal to many people, Hawaii is one of the most expensive states in which to live and retire in.
With an annual expenditure of $117,724.18 for a comfortable retirement, Hawaii has the highest level of spending among all 50 states.
New York
New York is the second-most expensive state in the United States and home to New York City, the country’s most expensive city.
Housing in New York is the second most expensive in the U.S., costing 2.3 times the national average.
California
California is the third most expensive state in the United States.
California has the highest gas prices in the nation, so transportation costs are the second highest in the country. Housing costs are twice the national average, with the average single-family home costing $683,996.
California has the second-lowest homeownership rate in the country. The median family income in California is $105,232 for a family of four, insufficient to make it a living wage in California, which requires $110,255 a year.
California also has the highest rate of homelessness in the United States.
Massachusetts
Massachusetts is the fourth most expensive state in the United States.
Massachusetts housing costs 77% more than the national average, with the highest prices concentrated in Boston.
According to the Massachusetts Real Estate Association, single-family homes cost an average of $518,203. A two-bedroom apartment rents for an average of $1,360 per month.
Rents in Boston are nearly triple the state average. Groceries cost an average of 19% more than the rest of the country, while health insurance costs 18% more.
Oregon
Oregon is the fifth most expensive country in the country, with costs slightly higher than the national average.
Although Oregon has one of the lowest utility costs in the country, it also has one of the highest housing costs. The average cost of a single-family home in Oregon is $447,968.
Less than a quarter of the population is able to afford a new home. Two-bedroom apartments cost, on average, $1,185 a month.
Utilities cost an average household $333.27 a month. While prices are higher than the national average, so are incomes. The state’s median income for a family of four is $100,533.
The living wage for a similar family is $96,003 annually.
