Besides being home to the most expensive city in the world, New York is the least affordable US state to retire in.
This is according to WalletHub”2023 Best States to Retire“, which compared the 50 states in three main categories: affordability, quality of life and health care.
For the affordability measure, WalletHub used data from various agencies such as the US Census Bureau and the Council for Community and Economic Research. The ranking looked at the adjusted cost of living, general taxation and the annual cost of home services, along with other factors.
While New York ranked 10th in the quality of life category and 16th in health care, it came in 50th for affordability. This is likely due to the fact that the adjusted cost of living is the second highest, behind Alaska, and THE third highest tax rateaccording to WalletHub.
Even $1 million in retirement savings would only cover your living expenses for about 14 years, a fraction of the 25 years or older retirement usually lasts.
Don’t expect to find affordable prices across the Hudson River, either: New Jersey ranks second among the most expensive states to retire to.
Here are the 10 most expensive states to retire in, according to WalletHub:
- new York
- New Jersey
Retirement will be different for everyone, and there are several factors to consider.
While a state’s cost of living is often significant, retirees may also think about how close they will be to family and how easily they will be able to access health care and engage in social activities, Alan Castel, a professor at the University of California, Los Angeles, and author of “Better with Age: The Psychology of Successful Aging,” said in the WalletHub report.
If you’ll be living on a fixed income in retirement, it’s important to regularly review your budget and future financial commitments, Castel said.
“Sometimes our spending habits need to be reassessed, and many senior discounts can be used to lower bills,” he said. “It may also be worth considering reducing or minimizing certain costs that are no longer necessary.”
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