How much do you REALLY need to retire? Fascinating map shows the income needed for senior citizens to live comfortably in each state Retirement will cost more than twice the amount in Hawaii than MississippiThe average annual cost of retirement across all 50 states is $68,000Assuming 3 percent inflation those entering retirement would need $3.5 million
Senior citizens looking to relocate may want to steer clear of Hawaii as it ranks as the most expensive state to retire to, figures show.
Retirees in the Aloha state require $121,000 to live comfortably, according to study by GoBankingRates – compared to those in Mississippi who need just $55,000.
Washington DC, Massachusetts, California and New York were the next most expensive states to retire to, with an average annual cost of $94,000 across all four.
After Mississippi the four cheapest states were Oklahoma, Alabama, Kansas and Iowa, with an average cost of $57,000 a year.
Across the US, the average annual income required for comfort was $68,000.
Across the 50 US states, the average annual income required for comfort was $68,000, according to a study from GOBankingRates
Assuming an average inflation rate of 3 percent and that the American entering retirement is now aged 65, and likely to live another 30 years, they would need nearly $3.5million. These figures do not take into account the added bonus of social security payments.
The study considered the cost of groceries, healthcare, housing, utilities and transportation to establish the average income that would be needed to enjoy a comfortable retirement.
After calculating total consumption expenditures, an additional savings buffer was calculated assuming that total expenditures consume 80 percent of a budget with 20 percent left over for savings.
The GOBankingRates study analyzed the expenditures of Americans aged 65 and older based on data from the most recent survey by the Bureau of Labor Statistics.
Spending estimates were then adjusted for each state by scaling each cost category by its corresponding cost of living index score.
In Hawaii, the most expensive state in which to retire, the study found that around $121,000 would be required annually for a comfortable requirement. Pictured is an aerial view of Honolulu, Hawaii
According to a recent Northwestern Mutual study, the average American predicts they will need $1.27 million to retire comfortably
Other studies have found that although many Americans recognize the need for such large sums in order to maximize their chances of comfortable retirement, many simply do not have it.
According to a recent Northwestern Mutual study, the amount Americans predict they will need to retire comfortably is $1.27 million but the average amount saved is just $89,300 – a mere 7 percent of the target sum.
However, almost half of those surveyed – some 48 percent – confessed that they did not think they would have enough money saved for the future they want, according to the findings.
Overall, the average American now thinks they will have to work until they are 65 to be retirement ready, up from 64 last year.
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