When you’re earning your retirement savings, it may seem like bulk is the most important financial component to your nest egg. However, that’s not fully true! Your savings may stretch farther in different locations with lower costs of living. Here are the states with the highest average retirement savings. How do you line up?
- Delaware: $286,000;
- Alaska: $271,000; and
- New Hampshire: $264,000.
So, now that you know the states with the highest average retirement savings, the question is: how does this affect your plan for your golden years? Well, that’s where the math comes in! Essentially, what you can do is find a state with a low cost of living, which will allow your retirement savings to last you longer. This will help prevent you from living out your money, a problem that plagues many Americans—no matter where they’re residing. Here are the states where your funds will last you the longest, regardless of whether or not you meet the highest average retirement savings:
- Mississippi: 8 on the Cost of Living Index;
- Tennessee: 7 on the Cost of Living Index; and
- Kentucky: 0 on the Cost of Living Index.
While these states may seem incredibly distant from each other, they’re both representing a well-established connection in American financial data. Notably, many of the states with the highest average retirement savings tend to be in the more affluent areas of the country, such as the northeast. States with the average lowest costs of living, on the other hand, tend to be in the South and middle America. Because these states have low costs of living, that makes sense that savings won’t build as much. This bears a lesson that all potential retirees ought to know: the effectiveness of your retirement savings depends both on finances and geography. Make sure that you consider both when creating your nest egg—and your plans of where to roost.
Looking for another important way to increase your savings? Let the expert investors at Ty J. Young Inc. give you a helping hand. Call us at 877-912-1919. Plus, for more helpful information and advice, follow our Retirement You Earned blog.