Retirement is the critical moment when a person decides to stop working and devote their free time to what they truly want to do. Activities include traveling, reading, pursuing a new hobby, and spending time with loved ones.
These are some of the most common desires of people who aspire to be able to retire one day. However, in order to do so, a number of criteria must be met, including age and number of years of State contributions.
However, in the United States, retirement can be a significant economic challenge. This means that it can be prohibitively expensive, particularly in states where the cost of living for the most basic necessities is high.
So much so that a GOBankingRates study found that in 15 states, you must be a millionaire to ensure that your basic expenses are covered for at least 25 years after retirement.
Most expensive states for retirement
Retirement in the United States can be extremely expensive, particularly in certain states. According to a study conducted by GOBankingRates, it is required to have saved millions of dollars in order to consider a decent retirement in some areas.
The first of these states, and thus the most expensive to retire in, is Hawaii. According to this study, a basic retirement requires approximately $2.21 million. This calculation includes basic expenses like housing, food, transportation, utilities, and medical care.
Furthermore, this figure represents a calculated minimum in the current situation, so inflation is not taken into account. Following Hawaii, Massachusetts and California are the most expensive states, with estimated savings of 1.64 million and 1.61 million dollars, respectively.
Despite this, they are popular retirement destinations due to their climate, infrastructure, and high standard of living. This does not imply that they are more expensive or that you must have a large sum of money saved to live there in retirement.
Other of the most expensive states to retire in
Retirement is a goal shared by all workers who have dedicated a significant portion of their lives to one or more professional pursuits. In a state desired as a result of their hard work.
And the fact is that being able to rest once you reach a certain age is a right that everyone should have. However, as we can see, many people are unable to afford it.
Alaska and New York are the next most expensive states for retirement in the United States, after the top three we’ve already seen.
For these locations, GOBankingRates estimates an annual cost of living of $74,147 and a required savings of $1.29 million in each case. These are followed by New Jersey, which requires 1.16 million dollars in savings due to its annual cost of $68,980.
