New York is the least affordable state in the United States to retire in, and it also has the world’s most expensive city. California did not make the list of the 10 states in the US where retiring is the most expensive.
That is by WalletHub’s “2023 Best States to Retire,” which evaluated each of the 50 states in terms of three main categories: health care, quality of life, and affordability.
WalletHub used information from the Council for Community and Economic Research and the United States Census Bureau for the affordability metric. The adjusted cost of living, general tax-friendliness, and the annual cost of in-home services were all taken into account in the ranking.
While New York ranked 10th in the quality-of-life category and 16th in health care, it came in 50th for affordability. According to WalletHub, this is probably because it has the third-highest tax rate and the second-highest adjusted cost of living, after Alaska.
Even if you had $1 million saved up for retirement, it wouldn’t cover your living costs for more than 25 years, much less 14 years.
Don’t hope to find affordability across the Hudson River either: the second most expensive state to retire in is New Jersey.
According to WalletHub, the following are the top 10 states where retiring is the most expensive:
- New York
- New Jersey
Retirement will look different to each person, and there are a few things to think about.
According to WalletHub’s report, Alan Castel, a professor at the University of California, Los Angeles and the author of “Better with Age: The Psychology of Successful Aging,” retirees may also consider how close they will be to family, how easy it will be to access health care, and how easy it will be to participate in social activities. While a state’s cost of living is frequently important, retirees may also consider these factors.
Castel stated that it is essential to regularly review your budget and future financial commitments if you will be living on a fixed income in retirement.
He stated, “Sometimes our spending habits need to be re-evaluated, and many senior discounts can be utilized to lower bills. It may also be useful to consider downsizing or minimizing certain costs that are no longer needed.”