If you’ve been saving for your retirement for any amount of time now, you know it can be difficult. And you may have even found yourself discouraged at some point when you realized exactly how much you would need to save in order to live comfortably in your Golden years. If you wish to receive $40,000 of income each year in retirement, then you would have to accumulate $1 million into your retirement account. And that’s assuming you use the 4% safe withdrawal rate through retirement.
For most people, saving $1 million is simply out of their reach. But there are other ways to increase your retirement income.
Increase Your Social Security Benefit
The average Social Security benefit is modest but you can increase your payments simply by working longer and earning more during your working years. You can also delay claiming your SS payments until you’re a bit older, this will increase your monthly payments. For each year you delay, the payment will increase by 8% per year until you reach the age of 70.
You’ve spent the last 20 years or so daydreaming about retirement and part of that daydream included moving to a warm state where you’ll never have to shovel snow again, or maybe even just moving closer to your kids and grandkids. And while you deserve to move where you’d like – after all – you’ve been working your butt off and it’s your time to do what you want, you should be aware that some states are friendlier to retired people than others. When you relocate, you should look beyond climate and consider if the state has high taxes, a high cost of living, is safe, and has a strong health care system.
With these considerations in mind, here are the absolute worst 10 states for retirement.
You’d think Oregon would be a great place to retire, after all it’s considered one of the happiest states in the nation, and it’s easy to see why that would be. With the ocean and rugged shore line, beautiful dense forest and numerous craft beer breweries, it seems like paradise. But Oregon has the seventh-highest cost of living in the nation, making it hard for those on a fixed income. The state also has high taxes, above the national average, and weather-wise, if you like the sun, you won’t love Oregon.