In terms of how much money you need to be considered middle class in 2024, New York is the second most strict state in the U.S. Because of the way the economy is right now, you’ll need to meet certain financial requirements to live a happy retirement. This is something that you should give a lot of thought to.
In this light, Go Banking Rates recently looked at how much money people in each U.S. state need to save for retirement. According to the study, New York is the fifth state where you need the most money each year to live happily in your golden years.
Things to take into account if you live in retirement in New York
The consulting firm’s experts stress how important it is to think about the cost of living in the place you want to retire because it has a big effect on how much you will need to maintain a good standard of living.
The analysis considered five key variables:
- Grocery expenses
- Healthcare costs
- Housing expenses
- Utility bills
- Transportation costs
There are big differences between these factors in each of the 50 states. Experts say that the same rules that apply to living a busy life also apply to figuring out how much money you need to save for retirement. All of these things are very important when figuring out how much money you’ll need for a happy retirement.
A recent study by a consulting company says that to cover living costs in New York City in retirement, you would need $71,233 a year. The amount goes up to about $85,480 if you add an extra 20% to live “comfortably.”
Retirement Costs Across the United States
This might seem hard for people who plan to retire in New York in the future. Take a look at what it’s like for people who want to retire in Hawaii, which is the most expensive state for retirement.
In this case, retirees need a healthy $129,296 a year to be at ease. But in West Virginia, which is the most cheap state for retirement, you only need to save $58,190 a year on average to live comfortably in retirement.
- New York requires an annual retirement income of $71,233 for basic living expenses.
- Adding comfort to your retirement in New York raises the needed amount to around $85,480.
- Hawaii is the priciest state for retirees, with an annual requirement of $129,296.
- West Virginia offers the most budget-friendly retirement option, needing only $58,190 per year.
The future is better for the state’s 4.5 million Latinos than in California, which is second on the list of most expensive states. But things are harder for them than in Florida and Texas, which are ranked 16th and 36th on the list and have the biggest concentrations of migrants.
Go Banking Rates said it best: “In some places, you can get by with a small nest egg.” In some, not even $2 million will be enough.
How Much Money Is Needed for a Comfortable Retirement in Each State
The 4.5 million Latino residents have better retirement chances than people who live in California, which was ranked as the second most difficult state to live in.
This is because of many things, such as the cost of living and job possibilities. Let’s draw attention to these differences and stress how important place is when planning for retirement.
Factors Influencing Retirement Costs
- Cost of Living: States like California are notoriously expensive, affecting how much money is needed for a comfortable retirement.
- Economic Opportunities: Availability of jobs and economic growth can impact retirement savings and living standards.
- Healthcare Costs: Varying healthcare expenses across states can significantly influence retirement planning.
Experts say it’s important to think about these things when figuring out how much money people in different places need for a comfortable retirement. As was already said, a small amount of funds can be enough in some places, but even $2 million might not be enough in others.