5 states where you can comfortably live with small retirement savings
It is no secret that retirement is expensive, and it is becoming increasingly difficult for people to prepare for it. Most retirees will not be able to survive only on social security benefits, which means they will need a city with lower prices to stretch their savings for as long as possible. According to a Transamerica Transnational Research Center report, the average baby boomer has only $ 152 000 retirement savings. Writes about it USA Today.
If you are approaching retirement and there are not many savings, there are a few things you can do. First, you can work as much as possible to save more over the years remaining before retirement. And secondly, you can figure out how to reduce your retirement costs so that your money lasts longer.
One of the biggest costs you will face from year to year is the total cost of living. This includes everything from housing to utilities, groceries to transportation, and if you live in an expensive city, there is nothing you can do to keep those costs down. But if you're ready to relocate after retirement, it might be worth moving to one of the more affordable states to keep your savings for as long as possible.
The most affordable states for senior citizens
The HowMuch.net financial services site analyzed Bureau of Labor Statistics data to determine how much it costs on average to retire in each state based on total cost of living. According to this study, these are the five most affordable states in which to retire. In addition, experts have calculated how much the average cost of living in retirement in each of these states over the entire period is:
1. Mississippi - $ 618
2. Tennessee - $ 661
3. Alabama - $ 713
4. Oklahoma - $ 724
5. Arkansas - $ 728
The most expensive states to retire in are California, New York, Oregon, Washington, and most states in the New England area - all of which cost over $ 1 million to retire.
On the subject: 15 US cities for retirement with minimal savings
Keep in mind that this data does not necessarily reflect the full picture. Although these states are on average more accessible, how much you can expect to spend will vary greatly depending on the city you choose. For example, although the Mississippi is the most affordable state in the country for retirement benefits, the average cost of housing in the suburbs of Jackson in Madison is almost 300 000 dollars. Meanwhile, in the small town of Connell, Washington, the average cost of a home is only 169 000 dollars, despite the fact that Washington is one of the most expensive states for retirees.
In other words, while understanding which states are more accessible than others is a good start, you need to explore the actual city you want to move to if you want to be sure that you are saving as much money as possible.
In addition, housing and the total cost of living are not the only factors to consider when deciding whether to move. For example, if you move across the country to a more accessible city, you can save a lot of money. But if you travel to your hometown every couple of months to visit family and friends, you may not be saving as much as you think. This is why, before you start browsing homes for sale in a new state, it is important to consider whether or not it is actually worth relocating when you retire.
Pros and cons of moving to retirement
One of the biggest advantages of moving to retirement is the aspect of saving money, especially if you are currently living in an expensive city. If you sell your current home and move to a new city with a significantly lower cost of living, you can potentially save tens of thousands of dollars or more right away.
Another advantage of moving is that it can be an exciting new adventure. Retirement may be one of the most relaxing times in your life, but relaxation can quickly turn into boredom if you are stuck in a rut, doing the same things every day. Moving to a new city can revitalize your retirement lifestyle, giving you a new reason to leave home, try new things and make new friends.
However, moving is an important decision that should not be taken lightly, so make sure you think it through completely. If you have a prospective new city, dig into your finances to see how life there compares to the city you currently call home.
Do not forget how much it will cost to move, because hiring movers is expensive, especially if you travel far, it can be quite expensive. Also, think about the emotional aspects of moving. If you leave the state, then you leave friends and family? How often can you afford to travel back to visit?
On the subject: 5 Tricks to Help Boost Retirement Benefits
Once you know where you want to move, and count the numbers to see how much you will save, make a test run to make sure that you really enjoy living there. Spend a few weeks in your proposed new city and think about whether you see yourself there.
You do not have to move to another state to save money. Perhaps instead you can move to a smaller, less expensive city, located not too far from where you currently live. This way you can enjoy a lower cost of living without uprooting your whole life.
Moving at retirement can be a great way to lower your cost of living and extend your savings, but it's not necessarily the right choice for everyone. Before making any big decisions, make sure you understand how the move will affect your retirement lifestyle - both financially and emotionally. If moving is the right choice for you, it may be one of the best retirement decisions you will ever make.
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