A Sobering Look at Retirement Expenses in New York
New Yorkers do not suffer fools gladly, and stating the obvious is one of the marks of a fool. Therefore, if you go to New York and start complaining about how expensive everything is, you are unlikely to endear yourself to the locals. On the other hand, complaining about how expensive everything is in New York while continuing to pay for it is one of the many pleasures of life in the Big Apple; everyone has the same complaints, but the one who thinks of the wittiest phrases by which to complain about them is the most desirable social companion. Those of us whose idea of fun is sitting in a cramped deli and eating overpriced but unmatchably delicious corned beef sandwiches while complaining about the price of everything are in for a disappointment, because the 2023 data are in, and New York is officially no longer the most expensive place in the United States to retire. To find ways to make New York retirement more affordable, contact a Bronx estate planning lawyer.
Drop Dead, Uni-Millionaires
You have probably been hearing that your goal should be to accumulate $1 million in retirement savings by the time you are 65 years old since you were too young to contemplate ever being old enough to retire. Conventional wisdom says that $1 million is how much you need for a comfortable retirement, but there are two problems with that. First, conventional wisdom is not adjusted for inflation. One million dollars does not go nearly as far as it used you. Case in point, New York’s Gilded Age millionaires would be multibillionaires in 2024 money.
According to the most recent data from Go Banking Rates, the average annual expenses for a retiree in New York State are $70,755.34. Only Hawaii is more expensive, where retirees can expect to spend over $96,000 per year. This is partially because groceries in Hawaii are nearly 50 percent more expensive than they are in New York, since every lettuce leaf and every grain of cereal has to make a long trip by air or sea to reach Hawaii.
With expenses like these, $1 million in retirement savings will last you just over 14 years. This means that it is fine to retire in New York at age 65 as long as you do not live to see your 80th birthday. Staying in the workforce until age 66 or older is starting to look more appealing. Of course, no two people’s expenses are exactly alike; yours will be less if you live with your family in a multi-generational household or if you live outside the five boroughs.
Schedule a Confidential Consultation With a Bronx Estate Planning Attorney
High prices in New York are as inevitable as death and taxes, but you can have an affordable retirement in the place you have always called home. An estate planning lawyer can help you plan to live within your means as a retiree in New York. Contact Cavallo & Cavallo in the Bronx, New York to set up a consultation.