Overall, however, most experts agree that you'll need between 70 and 80% of your pre-retirement income to maintain your standard of living in retirement. A general rule of thumb is that you'll need 70% of your annual pre-retirement salary to live comfortably. That might be enough if you've paid your mortgage and are in excellent health when you kiss goodbye to the office with a goodbye kiss. But if you're planning to build your dream home, travel the world, or get the doctorate in philosophy you've always wanted, you may need 100% of your annual income, or more.
The state also has one of the longest life expectancies, at 65, from just over 20 years to about 85 years, meaning that older people who retire there should expect to spend more during their retirement years than the national average. But remember, when redefining your retirement, consider your retirement income plan, assigning it to a budget based on what you expect to spend or what you can afford to spend category by category during your retirement. Knowing when and if you'll need to make adjustments to your spending habits in certain spending categories can help you have the confidence to live the retirement lifestyle you've been planning for many years. Those who retire in Idaho can expect to spend less to live comfortably than those who retire in most other states.
The most important factor in determining how much you need to retire is whether you'll have enough money to generate the income you need to maintain the quality of life you want after you retire. When thinking about a successful retirement, consider working with your financial advisor to design a retirement income plan that fits you and your expected lifestyle. And those expecting a more comfortable and financially secure retirement should plan to save a little more. Probably due in part to lower retirement costs, North Dakota residents are less likely to have to work until retirement age.
On the other hand, if you plan to pay off your mortgage before you retire or reduce your housing situation, you may be able to live comfortably on less than 80%. You may want to adjust your goal based on the type of retirement lifestyle you plan to have and whether your expenses will be significantly different. While Hawaii's warm climate may make it an ideal state for many Americans to retire, it's also the country's most expensive state to retire in. Despite higher retirement costs, savings and Social Security appear to be sufficient for a large portion of the state's retired population aged 65 and over.
While we're trying to present the general outlines here, it's still a good idea to consult a financial advisor who can adapt a retirement savings goal to your particular situation and who will also help you get on the right path with a savings and investment plan that can ensure you achieve your goals.