With $4,000 in monthly costs, your retirement funding challenge calls for $48,000 annually. The 4% safe withdrawal guideline proposes that retirement savings can safely produce 4% income per year, adjusted upwards annually for inflation, with little risk of depletion over a 30-year retirement.
While it's difficult to pinpoint an average retirement income, the most recent Census Bureau data indicates that people 65 and older have a median annual income of approximately $54,700 or nearly $4,560 per month. A financial advisor can help you create a retirement plan for the future. Speak with an advisor today.
Beaufort, South Carolina. Ranking high in livability, climate, and historic charm, Beaufort is one of the best cities where you can retire on $4,000 a month. The cost of living is 4.3% higher than the US average, with modest rent and housing costs.
But much larger Social Security payments are possible if you do everything you can to maximize your benefit. In fact, if you play your cards right and are fortunate enough to qualify, it's entirely possible that the maximum Social Security benefit will jump to more than $4,000 a month starting in 2022.
The cheapest retirement state in 2025 is West Virginia, where you'll need an estimated $712,913 in savings, and an annual budget of $50,954, to retire in comfort, according to new data released this week by GOBankingRates, the personal finance site.
Des Moines, Iowa
For retirees looking to live in a big city on a small budget, Des Moines is a good choice. Affordability is just one reason the Milken Institute ranked the state capital among the 100 large U.S. metro areas for successful aging.
According to the Social Security Administration, or SSA, the monthly retirement benefit for Social Security recipients is currently $1,783.55 in 2024 on average. Several factors can drag that average up or down, but you have the most control over the biggest variable of all — the age that you decide to cash in.
Starting in 2025, tax Social Security benefits in a manner similar to private pension income. Phase out the lower-income thresholds during 2025-2044. Memorandum containing this or a similar provision: Warshawsky 2008.
We saw in the previous section that our couple would need $4,000 per month ($48,000 per year) from their savings. So, in this case, they should aim for $1.2 million in retirement savings accounts, such as a 401(k) plan or individual retirement account (IRA), to provide $48,000 per year in sustainable retirement income.
The 4% rule is a popular retirement withdrawal strategy that suggests retirees can safely withdraw the amount equal to 4% of their savings during the year they retire and then adjust for inflation each subsequent year for 30 years.
Top the amount with 401(k) savings, living on $3,000 a month after taxes is possible for a retiree. For those who only have social security benefits to rely on, there are many places where they can retire on their checks both in the USA and around the world.
All states and the District of Columbia impose these taxes except Alaska, Delaware, Montana, New Hampshire and Oregon. The highest state sales taxes are in California (7.25%), Indiana, Mississippi, Rhode Island and Tennessee (7.0% in each).
Wisconsin, New Hampshire, and Tennessee are all highly ranked retirement destinations for health care needs due to low or no income taxes, access to quality health care facilities, and access to nature and recreational activities.
Key takeaways
Delaware (1), West Virginia (2), Georgia (3), South Carolina (4) and Missouri (5) are the top five states for retirement in 2024. Alaska (50), New York (49), Washington (48), California (47), and North Dakota (46) landed at the bottom of the rankings for the best and worst states to retire.
Florida, Colorado, and Virginia rank as the top three states for retiring seniors, according to WalletHub.1 In a recent study, they compared all states based on 46 indicators in three key categories: Affordability, which includes tax benefits, cost of living, and more.
The top state for retirement is Delaware, according to Bankrate's 2024 Best States to Retire study.
It's no secret why Florida continues to be one of the best states to retire in 2024. With a warm and sunny climate, retirees enjoy Florida's beautiful beaches and outdoor activities year-round. From the Gulf Coast to the Atlantic, Florida offers endless opportunities for leisure.
What state is the best financially to retire in? A 2022 Kiplinger analysis ranked the most tax-friendly places in the country for retirement: Alaska, Florida, Iowa, Mississippi, Nevada, Pennsylvania, South Dakota, Tennessee, Texas, and Wyoming.