Retiring in New York will cost you dearly: New survey shows the Big Apple is not an ideal retirement haven
While the Empire State does well in terms of safety, culture, and health, its high cost of living makes it less suitable for those seeking a smooth after-job life.
The dollar is one of the strongest currencies in the world, making it one with a higher purchasing power than almost all international currencies. However, the American currency’s purchasing power is not the same within the national borders and that brings a whole lot of a difference in affordability across the country in terms of costs of housing, food, and services.
One such state in the US, which is considered among the most expensive, is New York. The north-eastern state has the 13th highest income adjusted by the cost of living ($50k) while it has a median home value of $314,500 which is again the eighth highest, according to 24/7 Wall Street. The price of a buck in the Empire State is only worth $0.87and that makes it even tougher for retirees to reside there.
NY second-worst state to retire
Bankrate.com came up with a survey recently in which it called New York the second-worst state to retire as it comes last in terms of affordability. In a report that came out in August, the financial services company said affordability was one of the several factors considered in their survey conducted in July to know the states that were best and worst-suited for retirement.
“Where to live is probably one of the most personal decisions one can make because it’s not just about preferences, it’s also about the financial considerations that are associated with it,” Mark Hamrick, senior economic analyst at Bankrate, said.
The Bankrate report said New York was otherwise a good place for retirees to live. For example, it’s ranked 11th in terms of crime and seventh in terms of culture which makes it a good place for the elderly. But it’s the high cost of living (ranked 50th out of 50) in the state that turns people off. In terms of weather, too, New York’s rank (38th) is not too suitable.
Another survey conducted by WalletHub titled “Best States to Retire” earlier this year gave New York the rank of 47 in terms of affordability. Its ranks in terms of quality of life is 11 and health care is 13.
To substantiate the viewpoint that affordability is a big factor for people while choosing their place of residence after job life, the 18th Transamerica Center for Retirement Studies found that 71 percent of workers thought of the same in 2017, which is 17 points more from the next criterion (living near friends and families).
“Social security is the primary source of income for most retirees. Sixty-six percent of retirees indicate it will be their primary source of income over the course of their retirement,” Transamerica also reported.
However, the average monthly payment this year, as per the Social Security Administration, is $1,461. That makes an average annual social security income of about $17,500. Not many are sure about a future with such fortunes.