Achieving the dream of retirement is often accompanied by ambitious plans, from frequent travel to a permanent move to another country. However, choosing to live abroad requires a large financial reserve. For example, if the choice is to live in the United States, the annual cost of this new stage of life could exceed $120,000.
How to estimate the cost of living for retirees in the USA?
To determine the annual costs of living for people ages 65 and older in each state, the research used estimates from the federal agency's Bureau of Labor Statistics. The data includes the costs of food, shelter, transportation, health care and public services. The survey also added a 20% cash reserve for these costs to ensure more comfort for retirees.
Living in Hawaii: The most expensive state in America
Comparing the 50 US states, Hawaii appears to be the place with the highest cost of living. This rating comes from a recent survey conducted by GOBankingRates, a reputable US personal finance website.
The high cost of living in Hawaii is mostly due to transportation costs. Most goods are transported by sea, which increases the cost significantly. These additional costs are passed on to consumers through more expensive products. Additionally, living space in Hawaii is limited, resulting in the highest housing costs in the country.
More economical alternatives in Mississippi and other states
There are more accessible alternatives for those looking to retire in the United States. In Mississippi and other rural states, such as Alabama, Oklahoma, Iowa and West Virginia, home prices tend to be more affordable than states with large urban centers, where demand for housing is high.
List some costs in popular US states
Retirees who dream of living in some of the most popular destinations in the United States should prepare their pockets:
– California: The annual cost of a comfortable retirement is $90,399.
– Florida: The annual cost of a comfortable retirement is $68,109.
– Hawaii: The annual cost of a comfortable retirement is $121,228.
– Massachusetts: The annual cost of a comfortable retirement is $97,699.
– New York: The annual cost of a comfortable retirement is $88,444.
Oliver Ashford is a contributor to Mediarunsearch.co.uk, covering a broad range of topics including news, politics, business, technology, sport, entertainment and lifestyle. He focuses on delivering clear, balanced reporting that helps readers stay informed about current affairs and developments that matter. With an emphasis on accuracy, relevance and accessibility, Oliver aims to present useful information and engaging stories in a straightforward manner, making complex topics easier for readers to understand and follow.