Ranking Retirement State Affordability

[EscapeVelocity2020]

I realize that this article is geared toward traditional retirees, but do you think it could inform how an ER could choose a LCOL state?
https://www.seniorly.com/resource-center/seniorly-news/the-most-affordable-states-for-retirees

[EscapeVelocity2020]

I can at least weigh in on Texas...  I agree with the assessment that, for a retiree, cost of living is less that average (92.5) since restaurants, labor / services, and housing are cheaper than US average.  I also agree Texas would not be considered tax friendly.  Although there is no state tax, property taxes can be insanely high and sales tax is high (6.25 base rate, 8.25% in many cities).  Average utility bill is also higher than US average.  Although we have a  deregulated electric market, studies have shown that this has increased the cost to consumers (and it's also intentionally confusing and overwhelming when you evaluate the offerings).  Not to mention the freeze last year and now associated costs are being passed on to consumers.

There is no column taking in to account the benefit of mild winters and access to beaches, diverse cities to choose from, good in-state universities, relatively good transportation options (international airports, decent highway system, etc.).

I have plans in ER to keep a foothold in Texas for the winters and international travel hub, and to be near family, but I would love to find a summertime getaway (Wyoming, Utah, Montana maybe?)...

[YttriumNitrate]

I realize that this article is geared toward traditional retirees, but do you think it could inform how an ER could choose a LCOL state?
https://www.seniorly.com/resource-center/seniorly-news/the-most-affordable-states-for-retirees

Aside from the tax-friendliness column,  it doesn't seem like a state-level analysis would be granular enough to be particularly useful for many of the factors.

[GilesMM]

In the grand scheme of things much more important factors should trump these relatively minor cost of living variations, e.g. -
- proximity to family
- proximity to preferred lifestyle (politics, area of country, rural/urban/culture/food, access to oceans/lakes/rivers/mountains, climate)


There is little point in leaving Manhattan for Wyoming to save on cost of living if you love NYC.  You will hate Wyoming (and just about anywhere but NYC!).

[geekette]

These whole state rankings are useless, IMHO.  How can you lump Houston and, say, Amarillo or El Paso together in one lump?  Tax burden, maybe, but weather and access to health care vary wildly across the state.

$20/month for electricity in NC?  I'd like to know how they screwed up that number.

We have a regressive state income tax, but low property taxes. The state sales tax brackets 7% depending on your area (at least it's only 2% on food).  Access to health care is excellent in the cities, but poor in rural areas.  Hopefully that will get better as NC is FINALLY expanding Medicaid.

Mild weather, good beaches, and pretty (low) mountains, both accessible in a few hours drive from much of the state.  A couple international airports.  It'll do.

[JupiterGreen]

In the grand scheme of things much more important factors should trump these relatively minor cost of living variations, e.g. -
- proximity to family
- proximity to preferred lifestyle (politics, area of country, rural/urban/culture/food, access to oceans/lakes/rivers/mountains, climate)


There is little point in leaving Manhattan for Wyoming to save on cost of living if you love NYC.  You will hate Wyoming (and just about anywhere but NYC!).

Yes this!

I live in a LCOL area, the health care is terrible (people who graduated top of their class are not coming here), the environmental factors are so concerning we spend thousands of extra money a year filtering EVERYTHING, the produce sucks (all the good stuff goes to more prominent places) roads/infrastructure are bad. When a (minor) bridge needs work they just close it, same with roads. We had a storm probably 6 months ago where a big trees came down over a road, they just closed the road. Not sure when or if that will ever be reopen. schools are the bottom of the pack. I don't have kids, but I don't enjoy sharing a community with ignorant people. Virtually every time I need to hire someone for a house repair (roof, fence, plumbing, electrical etc) it has to be done twice (and I have to call and insist on them coming back) because it was not done right the first time (or something about it was done screwy). There are people here who are perfectly content with all of this, maybe you would be fine too. But as the saying goes, there is nothing in life that is (really) free. It is not really a LCOL area when taken in total. I do my best to contribute to this place and will continue to do so but I will be leaving the moment I hit my FIRE number and going to a HCOL state with higher standards and more educated inhabitants.

[jim555]

I'm in #50, but still mange to live on $16K a year. 

[ca-rn]

I'm in #47- California. 

The Average Retirement Income among the states don't seem to vary significantly.

But what is depressingly high for all the states is the high cost of home health care aide- about double the average retirement income with all/majority paid out of pocket.

[ca-rn]

I'm in #50, but still mange to live on $16K a year.

That includes housing?  Wow.

[jim555]

I'm in #50, but still mange to live on $16K a year.

That includes housing?  Wow.

Free and clear car and condo, low income perks like free health insurance, phone, Internet, discounted electric rates.

[2sk22]

We moved to the northeastern corner of NJ about thirty years as that's where my wife and I both got jobs. However, we are firmly staying put right here even after my wife retires. Sure property taxes are high but we can comfortably afford it and the quality of life has been great.

From where we live, I can just about see the tops of the skyscrapers in Manhattan. We get to enjoy the pleasures of New York and yet in a few minutes, we can get back home to our quiet street. My wife and I love exploring new restaurants in New York. Lots of great parks and hiking nearby. We live close to three great hospitals and it's just a 20 minute drive to Newark airport from where we can get flights to just about everywhere. Neighbors are all pleasant and highly educated - it's always fun talking to with them.