How Much Money Does it Take to Retire in Louisiana?
For Louisianians, there's actually a bit of good news when it comes to the amount of money needed for retirement. But then there's the whole life expectancy thing...
When it comes to retirement, it can be a little confusing to know what kind of money you'll need to pull it off, if at all.
The official retirement age is 65, but then there are important factors like life expectancy, consumer price index (inflation), and more.
Also to be considered are things like spending and financial needs which vary from person to person.
The good news for Louisianians is that our life expectancy is low as well as our cost of living when compared to other states.
OK, so that's kind of backhanded good news, but the point is that in Louisiana, it doesn't cost us quite as much to retire.
From bizneworleans.com -
"In Louisiana, average retirement spending stands at an estimated $908,073 – the eighth-lowest among states.
Goods and services in the state are 7.3% less expensive than they are, on average, nationwide, and life expectancy at age 65 is 17.9 years to 82.9, compared to 19.5 years to 84.5 across the country as a whole."
In Louisiana, if you retire at age 65, the estimation is that you'll need $928,073 to make it happen with a comfortable lifestyle for roughly 17.9 years.
At $928,073, I wouldn't exactly call retirement in Louisiana a bargain, but it looks pretty good compared to the rest of the country.
Now, it's important to note that the $928,073 amount is how much is needed "to retire comfortably".
Also to be noted is that once Americans reach 62 they begin to draw social security retirement benefits. According to bizneworleans.com social security payments can average anywhere "from $1,560 and can be as high as $3,240 per month."
However, as we've always heard, we should never factor in social security benefits to our retirement plans.
Below are the five most expensive and the five least expensive places to retire in the U.S. from bizneworleans.com.
The overall dollar amount is based on each state's cost of living and life expectancy.
Top 5 Most Expensive States For Retirement
1. Hawaii - $1,292,872
2. California - $1,226,026
3. New York - $1,218,129
4. New Jersey - $1,210,393
5. Massachusetts - $1,169,877
Top 5 Least Expensive States For Retirement
1. Mississippi - $840,470
2. West Virginia - $847,044
3. Alabama - $859,496
4. Kentucky - $859,649
5. Arkansas - $873,451
By the way, Louisiana lands at number 43 on the full list, making it the 8th least expensive, or most affordable state to retire in.
Check out the full ranking of all 50 states at bizneworleans.com.