New York ranks as the second most demanding state in the U.S. in terms of income requirements to be classified as middle class in 2024. These economic conditions demand specific financial criteria to maintain a comfortable lifestyle during retirement, which is something that deserves careful consideration.
In this context, a recent study by Go Banking Rates evaluated how much money one needs to save for retirement in each state across the U.S. The study placed New York in fifth place among states where you need to have the most dollars available annually to enjoy your golden years comfortably.
Things to take into account if you live in retirement in New York
Experts from the consulting firm emphasize that the cost of living in your chosen retirement location is a crucial factor that significantly impacts the amount required to ensure a proper standard of living.
The analysis considered five key variables:
- Grocery expenses
- Healthcare costs
- Housing expenses
- Utility bills
- Transportation costs
These variables exhibit significant variations across the 50 states. What holds true for an active lifestyle also applies to calculating the savings needed for retirement, experts explain. Each of these factors plays a vital role in determining the financial requirements for a comfortable retirement.
According to a recent analysis by a consulting firm, the annual retirement income required to cover living expenses in New York City amounts to $71,233. If you add an additional 20% to live “comfortably,” the total rises to approximately $85,480.
Retirement Costs Across the United States
For future retirees in New York, this might seem daunting. However, consider the situation for those planning to retire in Hawaii, which tops the list as the most expensive state for retirement.
Here, retirees need a substantial $129,296 annually to enjoy peace of mind. On the flip side, West Virginia, the most affordable state for retirement, requires a significantly lower average annual savings of $58,190 for a comfortable 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 4.5 million Latinos in the state have a more favorable outlook compared to California, which ranks second among the most expensive states. However, their situation is more challenging than in Florida and Texas, the other two states with the highest migrant concentrations, ranked 16th and 36th on the list.
As summarized by Go Banking Rates, “In some places, you can get by with a small savings nest egg. In others, not even $2 million will suffice.”
How Much Money Is Needed for a Comfortable Retirement in Each State
The 4.5 million Latino residents have better prospects when planning for retirement than those residing in California ranked as the second most burdensome state.
This is attributed to various factors, including cost of living and economic opportunities. Let’s highlight these disparities, emphasizing the importance of location in retirement planning.
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.
According to experts, it’s crucial to consider these factors when determining how much money is necessary for a comfortable retirement in different states. As noted, in some regions a modest savings can suffice, while in others, even $2 million might fall short.