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California and New York are among the five most expensive U.S. states for older citizens to spend their retirement years in the United States, according to a recent study by DepositAccounts.
The website states that people 65 and older tend to spend 20 percent less than younger adults in the U.S.
However, this figure varies "significantly" from state to state, with Hawaii being the most expensive state to live in at an annual cost of $56,757 and West Virginia being the cheapest at $33,388, as per the report.
California, the state with the largest Hispanic and Latino population in the U.S., is the second most expensive state to live in, with an estimated monthly cost of $4,716 and an annual cost of $56,597, just $160 below Hawaii.
The ranking of the places in the U.S. that are less affordable for people to live during their retirement years follows with three east coast states.
An individual of 65 and older will need at least $55,660 per year to live in New Jersey, $53,985 in Massachusetts, and $52,181 in New York.
The report was based on an analysis from data sources on different topics, such as housing, food, transportation, health care, entertainment and personal care.
The category in which people of 65 and older spend more is transportation with an annual average spending of $8,172, which is 33.5% less than the $12,295 spended on average by all consumers. Older adults also spend 21.8% less on food.
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In fact, the only category in which people 65 and older spend more than the average is health care. While an older adult spends an average of $7,540 annually, the average for all consumers is $5,850.
Among other key findings, the report also highlights average expenditures for those 65 and older have "significantly increased" in the past decade. Overall spending increased by 16.7% between 2017 and 2022 and 43.1% between 2012 and 2022.
Between 2012 and 2022, there were increases of 44.4% in food, 32.3% in entertainment and 25.0% in transportation expenses, the document says.
Annual cost of retirement ranking, by state
The following ranking lists U.S. states for their annual cost for living during retirement years (65 or older people), according to the study by DepositAccounts, based on data from the Census Bureau, Bureau of Labor Statistics, Bureau of Economic Analysis, CMS and ValuePenguin data.
- Hawaii $56,757
- California $56,597
- New Jersey $55,660
- Massachusetts $53,985
- New York $52,181
- Connecticut $50,335
- Washington $50,268
- Maryland $49,471
- New Hampshire $49,409
- Rhode Island $47,675
- Colorado $46,922
- Alaska $46,890
- Oregon $46,557
- Virginia $45,696
- Illinois $44,430
- Texas $43,773
- Vermont $43,396
- Minnesota $43,163
- Florida $42,552
- Utah $42,127
- Nevada $41,838
- Delaware $41,527
- Arizona $41,142
- Pennsylvania $40,768
- Maine $40,423
- Georgia $40,032
- Wyoming $39,717
- Montana $39,655
- North Dakota $39,462
- Wisconsin $39,348
- Nebraska $38,529
- Kansas $38,279
- South Dakota $38,202
- Idaho $38,054
- North Carolina $38,003
- Michigan $37,876
- Louisiana $37,312
- New Mexico $37,087
- Tennessee $37,070
- South Carolina $36,978
- Ohio $36,918
- Missouri $36,722
- Iowa $36,249
- Oklahoma $36,181
- Kentucky $35,298
- Indiana $35,222
- Alabama $35,044
- Mississippi $34,566
- Arkansas $33,546
- West Virginia $33,388
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