Recent research reveals that retired New Yorkers require an average of $50,997 per year to manage their living expenses after accounting for Social Security payments. This eye-opening figure was determined by GOBankingRates, which analyzed national average annual expenditures data for individuals aged 65 and older from reliable sources such as the Bureau of Labor Statistics and the Missouri Economic Research and Information Center.
For those eyeing a comfortable retirement lasting 25 years, New Yorkers must aim for a staggering $1.27 million in savings. A recent 2024 study indicates that many Americans believe they should have approximately $1.46 million saved before retiring, a figure that aligns closely with the reality for residents of the Empire State. However, a troubling statistic from a Northwestern Mutual study suggests that most Americans fall short, with less than $89,000 saved for retirement.
According to the same study, New York ranks as the fifth most expensive state in the nation for retirees. For New Yorkers seeking more affordable retirement options, it may be necessary to look beyond the tri-state area, as living costs remain high in neighboring states. For instance, retirees in New Jersey need an estimated $45,829 annually after Social Security to cover their living expenses, while those in Connecticut should budget around $43,697 each year.
When analyzing retirement costs, Hawaii emerges as the most expensive state for retirees, with annual expenses reaching an astonishing $87,770 after accounting for Social Security. In this paradise, even $2 million in savings may not last a full 23 years of retirement. Following closely behind, Massachusetts and California rank as the second and third most expensive states for retirees, respectively.
On the flip side, West Virginia has been identified as the most budget-friendly state for retirement. In this Mountain State, the estimated annual expenditures after Social Security amount to only $27,803, significantly lower than costs in New York. Kansas follows as the second least expensive state for retirees, with Mississippi, Oklahoma, and Alabama also appearing on the list of affordable retirement destinations.
As the cost of living continues to rise, it is imperative for those nearing retirement to carefully assess their financial situation. Ensuring that you have adequate savings is crucial for enjoying a comfortable retirement, especially in high-cost states like New York. Consider evaluating your retirement plans and exploring less expensive states to maximize your savings and quality of life in your golden years.
