GOBankingRates study reveals $2.05 million minimum retirement savings required in Hawaii due to high living costs, considering Social Security benefits and 25-year expenses for necessities and discretionary spending

According to a study by GOBankingRates, individuals planning to retire in Hawaii should aim to save around $2.05 million as the minimum amount required due to high living costs in the state. This sum takes into account Social Security benefits and covers essential expenses like groceries, housing, utilities, car maintenance, discretionary spending, and savings for a 25-year retirement period. The study analyzed data from the Bureau of Labor Statistics’ Consumer Expenditure Survey to determine how much people over sixty-five years spend on daily needs such as healthcare, transportation, housing, groceries, and utilities in each state. Additionally, GOBankingRates used Missouri Economic Research and Information Center’s cost of living index based on Council for Community and Economic Research survey data to assess the states’ costs of living from one location to another. The ten locations with the highest retirement savings requirements are listed below according to GOBankingRates shared information exclusively available through CNBC Make It, a popular platform for advice concerning professional progression and finance matters in life generally.
While Hawaii doesn’t impose taxes on Social Security benefits or income from pension funds like 401(k)s and Roth IRAs, the state subjects money taken from such investments fully to taxation purposes unlike what obtaines with regards Social Secruity monies across states’ lines.
Retiring in Hawai would offer natural beauties characterized by captivating scenery and beaches within reach. Nevertheless, retirees ought to note that retirement savings tend not always match expenditures due entirely on high costs of living experienced in Hawaii as compared with other locations. Therefore, it is essential for individuals planning their retirement years to determine the right amount they require based upon factors such as age and current income while considering how much they intend spending during leisure activities like travel.
The study’s findings highlight that every individual’s perception of a comfortable life after work would vary greatly. Hence, determining your specific savings goal is crucial in helping you figure out the right amount to save for retirement purposes.
In addition, it should be noted that while living costs are an essential factor when deciding where to retire; other considerations ought not be ignored like proximity with family and leisure activity preferences which vary significantly between people. Furthermore, to get further insight on ways of generating supplementary income outside the regular day job, CNBC Make It offers a new online course titled ‘How To Earn Passive Income Online.’ This platform also provides useful tips for success concerning wealth building methods generally as well financial savings management among others through newsletter publications.