Friday, 22 February 2019
BREAKING NEWS

New survey: These 25 states are the cheapest places to retire – WHIO

When it comes to retirement costs, do you know how much income you’ll need in order to live comfortably when you stop working?

The answer to that question depends heavily on where you live in the United States.

RELATED: Ask Clark: What is a life insurance retirement plan and are they recommended?

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You can stretch your retirement money by living in of these states

24/7 Wall St. calculated average annual retirement costs by state and ranked them from least to most expensive in a new list.

The findings show a stark $20,000 a year difference in cost of living between the state with the lowest estimated annual retirement cost (Arkansas at $36,378) and the state with the highest cost (Alaska at $56,879).

That can add up to be big bucks over time.

“A person who retires at 65 and lives 20 more years could need an extra half a million dollars for living expenses depending on which state they are in,” 24/7 Wall St. notes.

So with that in mind, here’s a look at where you can really keep your cost of living down in retirement…

Top 25 states where your money goes furthest in retirement

1. Arkansas

• Estimated annual retirement cost: $36,378

2. New Mexico

• Estimated annual retirement cost: $36,628

3. Kentucky

• Estimated annual retirement cost: $36,680

4. Ohio

• Estimated annual retirement cost: $36,767

5. Michigan

• Estimated annual retirement cost: $37,844

6. Indiana

• Estimated annual retirement cost: $37,874

7. Nevada

• Estimated annual retirement cost: $39,043

8. Idaho

• Estimated annual retirement cost: $39,099

9. Mississippi

• Estimated annual retirement cost: $39,139

10. North Dakota

• Estimated annual retirement cost: $39,470

11. Iowa

• Estimated annual retirement cost: $39,491

12. Missouri

• Estimated annual retirement cost: $39,696

13. Utah

• Estimated annual retirement cost: $39,725

14. Texas

• Estimated annual retirement cost: $39,814

15. Wisconsin

• Estimated annual retirement cost: $39,870

16. Kansas

• Estimated annual retirement cost: $40,237

17. Alabama

• Estimated annual retirement cost: $40,780

18. Tennessee

• Estimated annual retirement cost: $40,855

19. South Dakota

• Estimated annual retirement cost: $40,923

20. Rhode Island

• Estimated annual retirement cost: $40,954

21. Louisiana

• Estimated annual retirement cost: $41,107

22. Oklahoma

• Estimated annual retirement cost: $41,296

23. West Virginia

• Estimated annual retirement cost: $41,696

24. South Carolina

• Estimated annual retirement cost: $42,224

25. Nebraska

• Estimated annual retirement cost: $42,386

See where the rest of the states rank here.

What if you think you can’t afford to retire?

As you read this, you might be thinking, “Gee, that’s nice, but I don’t have a dime saved for retirement. I will probably work until I die.”

That’s kind of a bleak scenario. But the beauty of it is that you can change that scenario starting today.

Maybe you feel there’s no money to save with. If you feel you couldn’t possibly do a 401(k) because there’s no room for any savings, money expert Clark Howard talks about starting by saving just 1%.

That’s a scant one penny out of every dollar you earn.

Then, six months from now, bump your contribution up by just another 1%, and do it again in another six months.

After five years of that, you’ll be saving 10% of your pay before any employer match. But by doing it just 1% at time, you won’t notice much difference in your paycheck because it’s all baby steps.

See Clark’s investment guide for more details.

More money & retirement stories on Clark.com

Source: https://www.whio.com/business/personal-finance/new-survey-these-states-are-the-cheapest-places-retire/0p8wZBjAKhp1Lo8GM2SdXL/

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