NYC Retirement Reality Check Can You Afford to Chill?

Article Heading: Here’s How Much Money New Yorkers Need to Retire Comfortably: A New Study Reveals the Stark Reality

Retirement: the golden years, a time for relaxation, travel, and pursuing long-held passions. But before you can kick back and enjoy those well-deserved leisure activities, there's a crucial question to answer: how much will it actually cost to retire comfortably, especially if you call New York home? A recent study sheds light on this very topic, and the numbers might be a wake-up call.

According to new research from GOBankingRates, factoring in Social Security payments, retired New Yorkers need an average of $50,997 per year to cover their living expenses. This figure was calculated using national average annual expenditure data for people aged 65 and older, sourced from the Bureau of Labor Statistics and the Missouri Economic Research and Information Center.

What does this mean in terms of total savings? For a comfortable 25-year retirement in the Empire State, you're looking at needing a total of $1.27 million in savings. That's a substantial sum, and it highlights the importance of diligent retirement planning.

While this figure might seem daunting, it aligns with what many Americans believe they should have saved before retiring. A separate 2024 study indicated that Americans feel they should have around $1.46 million stashed away before giving up work. However, the reality for most is quite different.

Here's a sobering fact: the majority of Americans have significantly less than that saved for retirement. A Northwestern Mutual study from last year revealed that most Americans have less than $89,000 saved. This stark contrast underscores the urgent need for proactive retirement planning and consistent saving habits.

Key Findings at a Glance:

• Required Annual Income (after Social Security): $50,997
• Total Savings Needed for a 25-Year Retirement: $1.27 million
• New York's Ranking in Retirement Costs: 5th most expensive state

New York's High Cost of Living:

The study also confirms what many New Yorkers already know: the state is an expensive place to live. New York ranks as the fifth most expensive state in the US for retirees. And if you're hoping to find significantly cheaper options within the tri-state area, you might be disappointed. Neighboring New Jersey requires $45,829 per year for retirees (after Social Security), while Connecticut residents need to budget $43,697 annually.

The Extremes: Hawaii vs. West Virginia:

• Most Expensive: Hawaii takes the crown as the most expensive state for retirees, requiring a staggering $87,770 annually after factoring in Social Security. $2 million in savings won't even stretch for 23 years!
• Least Expensive: On the other end of the spectrum, West Virginia is the cheapest state to retire. Annual expenditures there are estimated at just $27,803 – nearly half the cost of retiring in New York.

Other relatively inexpensive states for retirement include Kansas, Mississippi, Oklahoma, and Alabama.

What Does This Mean for You?

Whether you're a New Yorker nearing retirement or just starting your career, understanding these figures is crucial. Here are a few key takeaways:

• Start Saving Early: The earlier you begin saving, the more time your investments have to grow.
• Create a Retirement Plan: Work with a financial advisor to develop a personalized plan that considers your individual circumstances and goals.
• Consider Location: If flexibility allows, exploring different retirement locations could significantly impact your overall costs.

Retirement planning can feel overwhelming, but with the right information and a proactive approach, a comfortable and fulfilling retirement is within reach. Don't let these numbers discourage you; instead, use them as motivation to take control of your financial future and create the retirement you've always dreamed of. Remember, knowledge is power, and planning is the key to unlocking a secure and happy retirement.

Tags: New York retirement, retirement costs, retirement savings, cost of living, retirement planning, financial planning, retirement funds, retirement income, NY retirement, retirement

Source: https://nypost.com/2025/07/12/lifestyle/heres-how-much-money-new-yorkers-need-to-retire-comfortably-new-study/