Retirement is that vital moment when a person decides to stop working and devote their free time to what they most want to do. Travelling, reading, taking up a new hobby, spending quality time with family and friends… These are some of the most common desires among people who dream of the moment when they can stop working. However, in order to achieve this, a series of requirements must be met, including age and the number of years of contributions to the State.
But in the United States, retirement can also be quite an economic challenge. This means that it can be quite expensive, especially in states where the cost of living for the most basic expenses is higher. So much so that a study conducted by GOBankingRates has determined that in 15 states specifically, you need to be a millionaire to be sure of covering your basic expenses for at least 25 years after retirement.
Most expensive states for retirement
Retirement in the United States can be especially expensive, especially in certain states. This has been pointed out by a study carried out by GOBankingRates, which indicates that it is necessary to have saved millions of dollars in order to consider a decent retirement in some places.
The first of these states, and therefore the most expensive to retire in, is Hawaii. This study estimates that around $2.21 million is needed to access a basic retirement. This calculation takes into account basic expenses such as housing, food, transportation, utilities, and medical care. Furthermore, this figure establishes a calculated minimum in the current situation, so factors such as inflation are not taken into account.
After Hawaii, Massachusetts and California are the most expensive states, where it is estimated that savings of 1.64 million and 1.61 million dollars are needed, respectively. Despite this, they are very popular destinations for retirees due to their climate, infrastructure and quality of life. This does not mean that they are more expensive and that in order to live there during retirement, you have to have a good amount of savings.
Other of the most expensive states to retire in
Retirement is a moment desired by all workers who have dedicated a large part of their lives to one or several professional activities. In a state longed for due to the effort made during their working years. And the fact is that being able to rest when you reach a certain age is a right that everyone should be allowed. However, as we are seeing, for many it becomes economically impossible.
Apart from the top three most expensive states for retirement in the United States that we have already seen, these are followed by Alaska and New York. For these places, GOBankingRates estimates the annual cost of living at $74,147 and a necessary savings of $1.29 million in each case. These are followed by New Jersey, which requires savings of 1.16 million dollars due to its annual cost of 68,980 dollars.
