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To gauge the cost of a comfortable retirement, the study included a 20% savings buffer.
GOBankingRates then used Forbes data to explain why the three six-figure states cost as much as they do.
Thats because the GOBankingRates figures factor in more spending categories and a 30% buffer for discretionary spending.
Massachusetts
According to Forbes, Massachusetts has the No.
2 highest cost of living in America at $53,860 per year.
For context, BLS data puts the average salary nationwide at $62,026.
However, even that isnt enough to mitigate the high price of living in the Bay State.
Despite earning more than any other population in the country, Massachusetts residents drop to No.
5 in disposable income afterall the billsare paid and the bills are steep.
The state has the No.
3 highest mortgage payments, No.
4 highest rents, No.
3 highest healthcare costs and No.
3 highest income taxes.
California
Notoriously expensive California is even pricier for retirees than Massachusetts.
According to Forbes, it has the No.
Its average annual living cost of $53,171 is Americas No.
3 highest, and after Californians cover those costs, they fall down to No.
12 in terms of disposable income.
The state has the No.
2 highest mortgage and rent payments and the No.
3 highest food costs.
Its average salary of $65,041 ranks only at No.
17 and when middling wages collide with sky-high expenses, the result is predictable.
Food costs are slightly higher in No.
1 Alaska, but not by much, and no one pays higher income taxes than residents of Hawaii.
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