Who wants to be a millionaire? To retire comfortably in California, that is more than a fleeting question: Total retirement spending there averages $1,389,909, so having over a million in savings, assets, and retirement plans such as social security will make your retirement less stressful. If someone is retiring in Alabama, however, they will spend nearly half a million less—the United States may be one country, but the cost of retirement in each state varies substantially. When you are on a fixed income, planning ahead is crucial to financial success, so knowing the cost of living, homeownership, and total retirement spending can help homeowners decide where their next move may be. Read this list to scope out the best state to retire and fantasize about the day you can finally put up your feet and relax.
1. Alabama
> Est. total retirement spending: $897,566 (3rd least)
> Avg. cost of living: 13.3% less than avg.
> Avg. monthly homeownership cost for senior citizens: $357 (5th lowest)
> Pop. 65 and older: 17.0% (18th highest)
In Alabama, residents need an average of about $898,000 to live out their retirement years in relative comfort — below the national average of about $1.1 million. Retirees in Alabama need less retirement savings because of both lower average life expectancy and lower cost of living.
Life expectancy at age 65 in the state is slightly less than 17.7 years, nearly two years below the national average. Additionally, goods and services are about 13% less expensive on average in Alabama than they are nationwide.
Advertisement
Related Stories
Design
What Gen-Z Buyers Really Want in a Home
The fervor of planning for Millennials in the home building industry has now pivoted to Gen Z. So, what does this new generation want?
Demographics
Post-Pandemic Trends: Working From Home
A greater share of workers are still working from home than before the pandemic and they're concentrated in the information, professional, and financial services sectors
Demographics
Millennials on Top Again as Largest Homebuying Group
Millennials beat out Boomers as the largest homebuying cohort, according to a recent report, but Boomers remain the largest generation of home sellers