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Retirement Costs and Lifestyle Considerations by State

Where you retire greatly affects your financial needs, lifestyle, and overall comfort. The analysis below combines the annual cost of living and required savings with insights into each state's appeal and challenges for retirees.

Alabama

• Annual cost of living: $53,357

• Savings needed: $773,000

• Why move here: Affordable living costs and mild winters make it appealing for budget-conscious retirees.

• Why not: Limited access to top-tier healthcare and sweltering summer heat can be drawbacks.

Alaska

• Annual cost of living: $74,147

• Savings needed: $1,292,753

• Why move here: Stunning landscapes, outdoor activities, and no state income tax attract adventurers.

• Why not: High costs and harsh winters can be challenging for those on a budget or seeking warmer climates.

Arizona

• Annual cost of living: $67,778

• Savings needed: $1,133,522

• Why move here: Warm weather, tax-friendliness, and retiree-friendly communities make it a popular choice.

• Why not: Water scarcity and extreme summer heat may deter some retirees.

Arkansas

• Annual cost of living: $53,477

• Savings needed: $776,005

• Why move here: Affordable living and scenic rural landscapes offer peace and quiet.

• Why not: Limited cultural and entertainment options could be less appealing to active retirees.

California

• Annual cost of living: $86,946

• Savings needed: $1,612,716

• Why move here: Iconic cities, mild weather, and access to top-tier amenities draw retirees.

• Why not: High living costs and traffic congestion can be significant downsides.

Colorado

• Annual cost of living: $61,709

• Savings needed: $981,803

• Why move here: Gorgeous mountains and outdoor recreation create an active lifestyle.

• Why not: Rising housing costs and altitude-related health concerns can pose challenges.

Connecticut

• Annual cost of living: $67,117

• Savings needed: $1,116,998

• Why move here: Proximity to major cities and a rich cultural history appeal to many.

• Why not: High property taxes and living expenses might deter budget-conscious retirees.

Delaware

• Annual cost of living: $60,207

• Savings needed: $944,248

• Why move here: Tax-friendly policies and close access to beaches make it attractive.

• Why not: Limited public transportation and infrastructure could be drawbacks.

Florida

• Annual cost of living: $61,529

• Savings needed: $977,296

• Why move here: Warm weather, no state income tax, and retiree communities are major draws.

• Why not: Crowded cities and hurricane risks might be a concern.

Georgia

• Annual cost of living: $54,980

• Savings needed: $813,559

• Why move here: Affordable costs and growing metro areas provide a mix of affordability and excitement.

• Why not: Humid summers and limited rural healthcare options could pose challenges.

Hawaii

• Annual cost of living: $110,921

• Savings needed: $2,212,084

• Why move here: Stunning natural beauty and a laid-back island lifestyle make it a dream destination.

• Why not: Extremely high costs and remote location are barriers for many retirees.

Idaho

• Annual cost of living: $61,289

• Savings needed: $971,288

• Why move here: Affordable living and access to outdoor activities make it appealing.

• Why not: Cold winters and fewer urban amenities might deter some.

Illinois

• Annual cost of living: $57,383

• Savings needed: $873,646

• Why move here: Vibrant culture in Chicago and diverse landscapes throughout the state.

• Why not: High property taxes and harsh winters could be deal-breakers.

Indiana

• Annual cost of living: $54,859

• Savings needed: $810,555

• Why move here: Low costs and a small-town atmosphere provide a peaceful retirement.

• Why not: Limited cultural diversity and fewer major attractions might be drawbacks.

Iowa

• Annual cost of living: $54,319

• Savings needed: $797,035

• Why move here: Affordable living and tranquil rural life make it a great option for retirees.

• Why not: Harsh winters and limited entertainment options might deter some.

The list can continue in a similar format for the remaining states if desired. Let me know if you’d like the rest to be detailed.

Where People Are Moving

About 338,000 U.S. residents retired to a new home in 2023, a jump of 44% 2022 and the highest number in three years.

The five states that attracted the highest percentage of interstate moves by retirees were:

• Florida, accounting for 11.1% of all inbound moves.

• South Carolina, drawing 10% of retiree relocations.

• New Jersey, with 6% of inbound moves.

• Texas, attracting 5.8% of relocating retirees.

• Washington, at 5.3%.

Conversely, certain states saw the highest percentage of retirees moving away. The most frequently exited states were:

• California, leading with 18.3% of all outbound moves.

• New York, with 11.4% of retirees leaving.

• Virginia, at 6.5%.

• Ohio, with 4.9% of outbound moves.

• Pennsylvania, rounding out the list at 4.8%.

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Nothing in this newsletter is financial advice. Always do your own research and think for yourself.