A survey found that in New York and New Jersey, more than $50,000 per year is needed for retirement. According to the ‘2024 Retirement Living Costs by State’ report published by financial management company Landing Tree, retirees in New Jersey need $4,638 per month or $55,660 per year for retirement living.
This is the third highest in the entire United States, following Hawaii ($56,757 per year) and California ($56,597). New York was ranked as the 5th highest state in the U.S. with the cost of living in retirement at $4,348 per month or $52,181 per year.
On the other hand, the southern regions of the United States, such as West Virginia ($33,388 per year), Arkansas ($33,546), and Mississippi ($34,566), were selected as the places with the lowest cost of living after retirement. In detail, New York retirees were found to spend an average of $2,441 per month on housing, $655 on food, $733 on transportation, $217 on medical expenses (Medicare Part B/C), $240 on entertainment, and $63 on personal care.
New Jersey retirees spend an average of $2,728 per month on housing, $662 on food, $741 on transportation, $201 on medical expenses (Medicare Part B/C), $242 on entertainment, and $64 on personal care. The expenses for most items are similar, but housing costs are higher in New Jersey than in New York.
As prices rise, the cost of living for retirees is also increasing. New York rose 8.4% from $48,127 per year in 2021 to $52,181 in 2024. In New Jersey, the annual salary increased from $50,976 in 2021 to $55,660 in 2024. In the United States as a whole, the average annual spending for people aged 65 and older increased by 16.7% from $49,542 in 2017 to $57,818 in 2022. Additionally, according to the report, consumers aged 65 and older spend less than consumers overall.
Those aged 65 or older spend an average of $57,818 per year, 20.8% less than the average annual spending of $72,967 for all consumers. In addition, the average retirement account savings of 65 to 74-year-olds across the U.S. was $609,230.
Lending Tree said it prepared the report using data from the federal government’s labor and demographic statistics and the Medicare and Medicaid Administration.