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Where to Live to Save for Retirement. It’s Not Where You Think

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I’ve spent some time lately discussing states with booming economies like South Carolina, and states that are near bankruptcy, like Illinois. Depending on a state’s fiscal strength, or lack thereof, your earnings could be targeted to fill the gaps. And some states have a cost of living so high, no matter what you’re making, it’s nearly impossible to save.

Maximizing your savings early on is the most important thing you can do to jumpstart the power of compounding in your retirement portfolio. But many Americans aren’t making very much money until their peak earning years, from say 45 to 65. Savers at this stage in the game need to maximize the effectiveness of their efforts. If you’re thinking about a pre-retirement move, Financial Advisor Magazine has highlighted a study that ranks the states by their benefit to pre-retirees. Karen DeMasters writes:

“We did not consider the weather. We wanted to expand people’s horizons beyond Florida and Arizona. A state that has a poor financial situation may raise taxes or cut benefits. The resources in a state with a lot of retirees may be overwhelmed,” Peterson says.

Full employment before retirement can mean a bigger nest egg, and the availability of affordable housing and assisted-living facilities are crucial to older Americans, says LPL. The states also were judged on the availability of employment and education and the overall wellness of residents.

LPL ranked the 50 states and the District of Columbia. Following are the top 10 places for pre-retirees in ascending order and a few of the reasons each stands out.

See the rankings here.

 

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E.J. Smith

Editor-in-Chief
E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@youngresearch.com.