How much money do you need to comfortably retire in Alabama
If you live in Alabama and are already planning for retirement, then you’re in luck. The Yellowhammer State is a cheap place to be when you’re finally done working.
Alabama is among the least expensive states in the nation to comfortably retire in 2023, according to newly released data from online personal loan provider NetCredit.
Based on cost of living and life expectancy data, you need just over $536,000 to comfortably retire here, according to NetCredit. That may seem like a big chunk of change, but it’s significantly less than the national average of $702,000, and Alabama is the 8th cheapest state to retire in the nation.
[Can’t see the map? Click here.]
Neighboring Mississippi is the cheapest place to retire. You need just $470,000 to live comfortably there once you’re done working. While the tropical paradise of Hawaii is the most expensive place to retire, with an average cost of $893,000.
The U.S. average of $702,000 makes it one of the most expensive countries for retirement, according to the analysis. It ranks as the No. 4 most expensive nation to retire in, just behind Iceland. Most countries in Europe are cheaper, including the UK ($524,000), France ($487,952) and Germany ($509,101). Singapore, in Southeast Asia, is the most expensive country for retirement. Retirees there would need to save $1.2 million to live comfortably.
The U.S. is one of the most expensive countries to retire in. | NetCredit
NetCredit calculated these numbers using an average retirement age of 61, based on data from Gallup, an analytics and advisory company known for public polling data. NetCredit also used average life expectancy of just over 76 years, based on data from the U.S. Centers for Disease Control and Prevention. That means potential retirees planning for about 15 years worth of savings.
NetCredit also used cost of living data from Numbeo. All this data was combined to see which places are the most – or least – affordable to retire in.
Do you have an idea for a data story about Alabama? Email Ramsey Archibald at [email protected], and follow him on Twitter @RamseyArchibald. Read more Alabama data stories here.