New York was ranked as the least affordable state to retire in the United States — while California didn’t even make the top 10.
A report by WalletHub compared all 50 states based on three key metrics: affordability, quality of life, and healthcare.
A given state’s affordability was calculated using data from a number of sources, including the US Census Bureau and the Council for Community and Economic Research.
New York State ranked 10th for quality of life and 16th for healthcare, but last (50th) for affordability, as the state has the second highest adjusted cost of living and third highest tax rate in the country after Alaska.
The report goes on to suggest that even someone with $1 million in savings for retirement could only cover living expenses for about 14 years — far less than the 25 years it typically takes to retire.
New York has been ranked as the least affordable state in the United States to retire to while also hosting the world’s most expensive city to live in
Other northern states, including Maryland (46th) and Illinois (42nd), were at the bottom of the chart in terms of affordability. Pictured above are the Chicago River and Trump Tower
THE MOST EXPENSIVE STATES TO RETIRE
1.New York
2. New Jersey
3. Vermont
4. Massachusetts
5. Maryland
6. Washington
7. Connecticut
8. Maine
9. Illinois
10.Oregon
Across the Hudson from New York, New Jersey has been ranked as the second worst affordable state to retire to.
California ranked 32nd for affordability but ranked 10th when it came to healthcare as the state is home to some of the best hospitals in the country.
A number of New England states, including Vermont, Massachusetts, Connecticut and Maine, have drawn up the last 10 places of least affordable housing.
The Green Mountain State of Vermont ranked 48th, followed by Massachusetts at 47th, although the Bay State ranked first for quality of life. Connecticut and Maine ranked 44th and 43rd for affordability. However, Maine ranked 6th for quality of life.
Other northern states, including Maryland (46th) and Illinois (42nd), were at the bottom of the chart in terms of affordability.
Solid Democratic northwestern states of Washington and Oregon ranked 45th and 41st, respectively.
At the other end of the table, Alabama ranked first for affordability, followed by Tennessee and West Virginia in second and third place.
Next came South Carolina, Delaware, Wyoming, and Georgia, with Wyoming also scoring well for quality of life, where the state ranked 9th.
Florida and Mississippi finished ninth and tenth. Florida also ranked fourth in the nation for quality of life.
Massachusetts ranked fourth from the bottom at 47, though Bay State ranked first for quality of life. Above the view from one of the units of the new high-end apartment building in Boston
A number of New England states, including Vermont, Massachusetts, Connecticut and Maine, have drawn up the last 10 places of least affordable housing. Pictured is the Riverside Yacht Club in Greenwich, Connecticut
Downtown high-rise apartments near the marina shimmer in the morning waters of the Willamette River in Portland, Oregon. Portland has embraced its national reputation as a city inhabited by odd, independent people
The Green Mountain State of Vermont was ranked 48th, followed by Massachusetts at 47. Pictured is Burlington, Vermont, Church Street Downtown with restaurants and tourists outside
Concerns about retirement finances have increased this year as Americans anticipate they will need to significantly increase their retirement savings.
According to a recent survey released by Northwestern Mutual, US adults now expect to need $1.25 million to retire comfortably, a 20 percent increase from last year.
But at the same time, the average American’s retirement savings have fallen 11 percent to $86,869, compared with $98,800 last year.
The expected retirement age has risen to 64 from 62.6 last year, suggesting Americans believe they need to work more years to have enough money to retire.
The average American’s retirement savings fell 11% to $86,869 compared to $98,800 last year
On average, adults in the US now expect to need $1.25 million to retire comfortably, a 20% increase from last year — albeit more than half
“For many people, this is a time of uncertainty, driven primarily by rising inflation and market volatility,” said Christian Mitchell, executive vice president and chief customer officer at Northwestern Mutual.
“We’ve also seen spending increase year over year, not only because of inflation, but also because people have regained a sense of normalcy in their lives after the earlier days of the pandemic,” he added.
“These factors are causing many people to reconsider how much they need for retirement and how long it will take them to get there.”