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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.
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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.
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 rarchibald@al.com, and follow him on Twitter @RamseyArchibald. Read more Alabama data stories here.
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As a seasoned expert in retirement planning and economic analysis, I can confidently delve into the intricacies of the information presented in the article. My extensive knowledge in finance, cost of living dynamics, and statistical methodologies positions me well to decipher the key components of the data and provide valuable insights.
The article, penned by Ramsey Archibald on March 3, 2023, and updated on March 14, 2023, discusses Alabama's attractiveness as a retirement destination, citing data from NetCredit, an online personal loan provider. The crux of the report is the comparative cost of retirement across different states in the U.S., with a focus on Alabama.
NetCredit's analysis combines two critical factors—cost of living and life expectancy—to determine the amount required for a comfortable retirement. The article states that Alabama stands out as one of the least expensive states for retirement in 2023, requiring just over $536,000 for a comfortable post-work life. This figure is notably lower than the national average of $702,000, positioning Alabama as the 8th cheapest state for retirement.
The neighboring state, Mississippi, takes the lead as the cheapest place to retire, with a lower requirement of $470,000 for a comfortable retirement. On the other end of the spectrum, Hawaii emerges as the most expensive state for retirement, demanding an average cost of $893,000.
A broader perspective is provided by comparing the U.S. to other countries. The article reveals that the U.S. is among the most expensive countries for retirement globally, ranking fourth after Iceland. Notably, European countries such as the UK, France, and Germany offer a more affordable retirement, with lower average costs.
NetCredit's calculations are based on an average retirement age of 61, using data from Gallup, and an average life expectancy of just over 76 years, sourced from the U.S. Centers for Disease Control and Prevention. This implies that retirees are expected to plan for approximately 15 years' worth of savings.
To refine their analysis, NetCredit incorporates cost of living data from Numbeo, a crowdsourced database. By amalgamating these diverse datasets, NetCredit determines the most and least affordable places to retire, as outlined in the article.
In conclusion, this data-driven article serves as a valuable resource for individuals contemplating retirement, offering a comprehensive comparison of retirement costs across states and globally. The methodology employed by NetCredit, drawing from reputable sources, adds credibility to the findings and underscores the significance of careful financial planning for retirees.
