10 Most Expensive American States To Retire

10 Most Expensive American States To Retire

If you have already retired or on the way, you may have to think twice before decide where to live out your golden years, considering the cost of living in the U.S. varies widely from state to state, and even within states. As it's hard to increase your income once retired, the best way to avoid a large portion of your income being eaten up is to live in an affordable area.

According to studies, a comfortable retirement costs a total of $987 000 of an America family, and is associated with life expectancy. We’ve compiled a list of the most expensive and affordable states for retirement in America, which measures the comparative expense of common expenses like housing, groceries, and steep property taxes. Check it out and see if you need to start building your finances, or relocate to a cheaper state.

1.Hawaii

With a total retirement spending of over 1 million dollars, Hawaii is one of the most expensive places to retire in the U.S.. In Hawaii, people need to spend 110% more on grocery goods and services than in any other state. Moreover, Hawaii has the second highest health insurance premiums in the country. Add to that the state’s high property prices and taxes, you‘ll have a very expensive place to retire. Hawaii Medical Assistance Program (HMAP), covers only very low-income residents. Otherwise, most retirees will have to secure private health insurance or purchase a policy from the exchange. And that’s not cheap.

2.California

Many people dream of one day retiring in sunny California, but the truth is that it's a very expensive state to live in. In fact, it's one of the most expensive states to retire in. According to researches, the living costs of California are 16.4% above the average. According to statics, the cost of housing in California is about 66% higher than the U.S. average, and electricity is about 87% higher. And it’s not just housing and electricity — California’s other expenses are higher as well. Health care is about 12% higher, groceries are about 20% higher, and transportation costs are about 56% higher.

If you are considering moving to California to retire, you will need to make sure that you have a healthy retirement savings account, as well as a solid health insurance plan.

3.New York

This comes as no surprise as the state of New York is one of the most expensive places to live in the United States. From housing to healthcare, everything in New York is more costly than in other states. Moreover, you need to factor in an additional $35,000 per year to cover non-fixed costs of living. This includes expenses such as healthcare and travel. The state also has some of the highest taxes in the country. These factors can make retirement more challenging for New Yorkers.

4.New Jersey

According to a study by GoBankingRates, New Jersey is one of the most expensive states to retire in the Northeast. New Jersey has a cost of living index of 133, which is about 10% higher than the national average. The state has a tax rate of 12%, which is above the national average of around 17%. The state’s Medicare premium is about 33% above the national average. New Jersey has a cost of living index of 133, which is about 10% higher than the national average. The state has a tax rate of 12%, which is above the national average of around 17%. The state’s Medicare premium is about 33% above the national average. The high retirement spending is mainly due to the higher average cost of living: New Jersey's goods and services are 16% higher than the national average.

5.Massachusetts

Massachusetts is also one of the most expensive states to live in. The cost of living here is about 14% higher than the national average. Housing costs are especially high in Massachusetts, with the median home value being about 53% higher than the national average.

As with most places, healthcare costs are likely to be a significant portion of retirement expenses. Medicare only covers about 70% of the average cost of doctor visits, so most retirees will likely want to purchase supplemental insurance to help with these costs.

6.Washington

According to a recent study, Washington is one of the most expensive states to retire. The cost of living in Washington ranks in the top 10 of all states, and it also ranks in the top 10 for Medicare premiums. Washington has no state income tax, but it does have a sales tax of about 5.5%. Medical expenses account for about one-third of retirement expenses, and Washington has some of the highest Medicare premiums in the country. For example, a Washington resident who purchases Medicare Part D coverage can expect to pay about 21% above the national average.

If you’re thinking about retiring to the Evergreen State, be prepared for the high cost of living, which can expect to spend you $1,245,825 to live comfortably in retirement.

7.Connecticut

According to the Cost of Living Index (COL), Connecticut ranks as one of the most expensive states to retire. COL takes into account factors such as the cost of housing, groceries, gasoline, and utility bills to determine how expensive it is to live in a given place. An average home in Connecticut costs around $300,000, which is significantly more expensive than the national average of $189,000. Moreover, utility bills are significantly higher in Connecticut than in most other states. The average utility bill in Connecticut is around $155 per month, which is significantly more expensive than the national average of $100 per month.

8.Maryland

Connecticut is one of the most expensive states to retire in the United States, due to its high cost of living and the expensive cost of housing. The average cost of a one-bedroom apartment in Connecticut is $1,100, and the average cost of a two-bedroom is $1,600. The average utilities in Connecticut cost $100 per month. The average cost of health insurance in Connecticut is $500 per month. The average cost of a gallon of gas in Connecticut is $2.89.

9. Florida

The sunshine state is known for its beautiful beaches, wonderful weather, and active retirement communities, but it’s also one of the most expensive states for retirees. The Cost of Living Index for Florida is approximately 156.71, which is above the national average of 100. The cost of groceries in Florida is about 10% higher than the national average, and health care expenses in Florida are about 15% higher than the national average.

If you are looking for a retirement destination that offers low cost of living, then Florida may not be the most appropriate place.

10.New Hampshire

To retire in New Hampshire, you must earn a significant amount of money. The state’s cost of living is about 13% higher than the national average, which is due largely to the state’s high property values and taxes. Additionally, New Hampshire has the second-highest property taxes in the country. The state’s taxes on retirement income are also on the high side. Unfortunately, New Hampshire does not offer many public assistance programs for seniors, such as Medicare or Social Security, and Medicare won’t cover any medical expenses until you reach the age of 65.