New York has been ranked as the least affordable state to retire in the entire United States, while California doesn’t even make the top 10.
A report of WalletHub compared all 50 states using three main metrics: affordability, quality of life, and health care.
A particular state’s affordability was calculated using data from various sources, including the US Census Bureau and the Council for Community and Economic Research.
New York State ranked 10th in quality of living and 16th in health care, but ranked last (50th) in affordability, as the state has the second-highest adjusted cost of living, behind Alaska, and the third highest tax rate in the country.
The report goes on to suggest that even for someone with $1 million in retirement savings, that could only cover living costs for about 14 years, much less than the 25 years a retirement typically lasts.
New York has been ranked as the least affordable state to retire in the United States, as well as being home to the world’s most expensive city to live in.
Other northern states, including Maryland (46) and Illinois (42), were near the bottom of the table when it came to affordability. Above, the Chicago River and Trump Tower are shown.
THE MOST EXPENSIVE STATES TO RETIRE IN
1. New York
2. New Jersey
Across the Hudson from New York, New Jersey ranked as the second least affordable state in which to retire.
California ranked 32nd in terms of affordability, but ranked 10th when it came to health care, as the state is home to some of the best hospitals in the country.
Several New England states, including Vermont, Massachusetts, Connecticut, and Maine, developed the bottom 10 spots for least affordable places to live.
Vermont’s Green Mountain State ranked 48th followed by Massachusetts at 47th, though the Bay State ranked first for quality of life. Connecticut and Maine ranked 44 and 43 for affordability. However, Maine ranked sixth for quality of life.
Other northern states, including Maryland, 46, and Illinois, 42, were near the bottom of the table when it came to affordability.
The solidly Democratic northwestern states of Washington and Oregon came in 45th and 41st.
At the other end of the table, Alabama ranked first in affordability, followed by Tennessee and West Virginia in second and third, respectively.
South Carolina, Delaware, Wyoming and Georgia were next, with Wyoming also scoring high for quality of life, with the state ranking ninth.
Florida and Mississippi ranked ninth and tenth. Florida also ranked fourth in the nation for quality of living.
Massachusetts ranked fourth from bottom with 47, though Bay State ranked first for quality of life. Above, the view from one of the units of the new high-end apartment building in Boston.
Several New England states, including Vermont, Massachusetts, Connecticut, and Maine, developed the bottom 10 spots for least affordable places to live. Pictured is the Riverside Yacht Club in Greenwich, Connecticut
Downtown high-rise apartments near the marina glow in the morning waters of the Willamette River in Portland, Oregon. Portland has embraced its national reputation as a city inhabited by strange and independent people.
Vermont’s Green Mountain State was ranked 48th followed by Massachusetts at 47th. Pictured, Burlington, Vermont, Church Street in downtown with restaurants and tourists outside
Concern about retirement finances has increased this year, as Americans anticipate that they will need to significantly increase their retirement savings.
On average, American adults now expect to need $1.25 million to retire comfortably, up 20 percent from a year ago, according to a recent survey published by northwest mutual.
But at the same time, the median retirement balance for Americans has fallen 11 percent to $86,869, down from $98,800 last year.
The expected retirement age has risen to 64, up from 62.6 last year, indicating that Americans believe they will have to work more years to accumulate enough for retirement.
The median retirement balance for the average American has fallen 11% to $86,869, down from $98,800 last year.
On average, American adults now expect to need $1.25 million to retire comfortably, 20% more than a year ago, although more than half
“This is a period of uncertainty for many people, driven in large part by rising inflation and volatility in the markets,” said Christian Mitchell, Northwestern Mutual’s executive vice president and chief customer service officer.
“We’ve also seen year-over-year spending increases not only as a result of inflation, but also as people have regained a sense of normalcy in their lives after the early days of the pandemic,” he added.
“These factors are leading many people to recalibrate their thinking about how much they will need to retire and how long it will take to get there.”