The decision to spend retirement in any of the United States is entirely personal. Each U.S. citizen is free to choose where to retire. One factor that can affect that decision is the pension you will receive when you retire. That is why it is best to start money-related planning at an early age. Social Security will pay a higher pension if we have a higher salary as a worker.
With this information we can know which is the state where you will be able to get the highest pension. If you contribute for 35 years with a high salary, Social Security will pay you a higher monthly pension. That is the main reason why it is very important to have a good salary during the years worked. There are more factors that influence the retirement benefit, but that is key and, moreover, we can control it.
The State with the highest pension in the Social Security system
As we have said before, to get a high Social Security pension we need to contribute a lot as workers. The state with the best average salary is the District of Columbia. But this district is very secretive and few people work there. However, they all have good salaries, so we know the reason for such a high average salary.
The second of these options is New York. This time we are dealing with a more realistic place. Everyone can work in New York and get high Social Security in the future. With the second highest average salary in the United States, New York State will help us contribute enough money to have a higher Social Security pension in retirement.
Having a better salary doesn’t mean it’s the best option
It is true that both the District of Columbia and New York State have the highest salaries. But the former does not have a wide variety of jobs and the latter has very high average expenses as well. This means that a high salary in New York may seem low in New York State because of the overall prices.
Another option is to work in New York to get good Social Security and then switch states when you apply for retirement. In this case, remember that there are many states where you have to pay state taxes, so study the situation well before making the final decision.