Tuesday, September 27, 2022
HomeMinnesota Breaking NewsWhat It Costs to Retire Comfortably in Minnesota

What It Costs to Retire Comfortably in Minnesota

imageForEntry26 N9mThe consumer price index surged by 7% in December of 2021, the fastest rate in four decades. Surging inflation is a troubling development for the millions of American retirees relying on fixed incomes and those whose savings are invested in equities markets – and it should serve as a wake-up call for the one in every four American adults with no retirement savings.

While budgeting for retirement can be difficult, it is essential for those who want financial security throughout their retirement. Including a small financial cushion for unforeseen expenditures and economic challenges, the average 65-year-old American can expect to spend about $1,067,000 throughout retirement. This takes into account estimated annual spending, a small financial cushion, and life expectancy at 65. Here are 19 things to do if you want to retire early.

Because cost of living and life expectancy differ from state to state, expected spending throughout retirement varies as well. States with higher retirement spending estimates tend to have either higher average cost of living, longer average life expectancy, or both – and vice versa.

In Minnesota, average retirement spending stands at an estimated $1,079,270 – the 15th highest among states. Goods and services in the state are 1.4% less expensive than they are, on average, nationwide, and life expectancy at age 65 is 20.0 years to 85.0, compared to 19.5 years to 84.5 across the country as a whole.

Of course, estimated retirement spending is not synonymous with retirement savings. For example, once Americans reach age 62, they can start collecting Social Security retirement benefits, which amounts to an average monthly payment of $1,560 and can be as high as $3,240 per month. While this is not nearly enough to cover most spending, it is a significant source of income that should be considered when deciding on savings needs. Retirement spending and financial needs also vary considerably from one person to the next.

The calculation used to create total retirement spending is based on the average annual expenditure for U.S. residents 65 years and older in 2020 of $47,579, according to the Bureau of Labor Statistics. We adjusted that figure by local cost of living from the Bureau of Economic Analysis and average life expectancy in years at age 65 from the Centers for Disease Control and Prevention, and multiplied the result by 115% in order to reflect greater financial stability and comfort in retirement.

Rank State Avg. cost of comfortable retirement ($) Cost of living Life expectancy at age 65 (years)
1 Hawaii 1,292,872 12% more than avg. 86.1
2 California 1,226,026 10.4% more than avg. 85.3
3 New York 1,218,129 10.2% more than avg. 85.2
4 New Jersey 1,210,393 11.2% more than avg. 84.9
5 Massachusetts 1,169,877 7.4% more than avg. 84.9
6 Washington 1,163,099 7.4% more than avg. 84.8
7 Connecticut 1,148,930 3.4% more than avg. 85.3
8 Maryland 1,130,187 6.5% more than avg. 84.4
9 Colorado 1,125,680 2.9% more than avg. 85.0
10 New Hampshire 1,106,575 3.7% more than avg. 84.5
11 Oregon 1,106,165 2.6% more than avg. 84.7
12 Florida 1,096,587 0.7% more than avg. 84.9
13 Rhode Island 1,086,644 1.8% more than avg. 84.5
14 Alaska 1,084,571 3.2% more than avg. 84.2
15 Minnesota 1,079,270 1.4% less than avg. 85.0
16 Vermont 1,076,299 0.7% less than avg. 84.8
17 Illinois 1,066,540 0.5% more than avg. 84.4
18 Virginia 1,066,344 1% more than avg. 84.3
19 Arizona 1,062,468 0.9% less than avg. 84.6
20 Texas 1,029,393 0.5% less than avg. 83.9
21 Delaware 1,028,189 2.1% less than avg. 84.2
22 Pennsylvania 1,019,615 2.4% less than avg. 84.1
23 Utah 1,017,047 4.7% less than avg. 84.5
24 Maine 1,011,380 3.2% less than avg. 84.1
25 Wisconsin 994,278 6.8% less than avg. 84.5
26 Nevada 993,064 2.9% less than avg. 83.7
27 North Dakota 992,112 8% less than avg. 84.7
28 South Dakota 986,475 8.5% less than avg. 84.7
29 Montana 986,329 7.6% less than avg. 84.5
30 Nebraska 980,933 7.1% less than avg. 84.3
31 New Mexico 976,982 8.4% less than avg. 84.5
32 Michigan 972,547 6% less than avg. 83.9
33 Idaho 963,044 8.8% less than avg. 84.3
34 Iowa 961,471 9% less than avg. 84.3
35 Wyoming 959,105 7.7% less than avg. 84.0
36 Georgia 951,812 5.5% less than avg. 83.4
37 Kansas 950,110 7.6% less than avg. 83.8
38 North Carolina 939,694 8.2% less than avg. 83.7
39 South Carolina 932,705 8.4% less than avg. 83.6
40 Missouri 931,203 7.5% less than avg. 83.4
41 Indiana 926,213 7.5% less than avg. 83.3
42 Ohio 923,109 8.3% less than avg. 83.4
43 Louisiana 908,073 7.3% less than avg. 82.9
44 Tennessee 902,530 7.8% less than avg. 82.9
45 Oklahoma 879,430 8.7% less than avg. 82.6
46 Arkansas 873,451 10.8% less than avg. 82.9
47 Kentucky 859,649 10.2% less than avg. 82.5
48 Alabama 859,496 10.7% less than avg. 82.6
49 West Virginia 847,044 12% less than avg. 82.6
50 Mississippi 840,470 12.2% less than avg. 82.5
RELATED ARTICLES

Most Popular

Recent Comments