I Lived in Hawaii: 5 Financial Reasons I Won’t Retire There

For many people, Hawaii is the perfect summer getaway. For the roughly 1.44 million people who live there, it’s home — now and forever for many. But for some, even those who used to live there, it’s not a place they’d want to go when they retire.

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The latter is the case for Rinal Patel, a licensed real estate agent and the founder of We Buy Philly Home . While retirement isn’t yet in the cards for Patel, she has no true desire to go back to Hawaii to retire — despite being a former resident there.

“I’ve always been in awe of Hawaii’s beauty and culture because I used to live there. This tropical paradise has so much to offer, from the breathtaking beaches to the mouthwatering cuisine,” she said.

“I have to say, though, that I would not want to live in Hawaii after I retired,” she continued. “I’m not sure I’d want to live there permanently, even though it would seem like everyone’s ideal retirement location, for a variety of financial reasons.”

Patel isn’t alone in not wanting to retire in the Aloha State either. According to a SmartAsset study , Hawaii ranks only 26th in terms of popularity for retirement. The latest data found that approximately 6,313 retirees (ages 60 and up) moved into the state, while 6,051 moved out.

While Hawaii is still quite the popular destination, here’s why Patel said she wouldn’t want to go back permanently .

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High Overall Cost of Living

The Missouri Economic Research and Information Center (MERIC) found that Hawaii is the most expensive place in the country to live in — right up there with the District of Columbia, Alaska and California. The overall cost of living (COL) index is 186.2 (weighed against a national average of 100). Here’s how it breaks down:

• Grocery COL: 124.1
• Housing COL: 313.2
• Utilities COL: 176.4
• Transportation COL: 138.8
• Health COL: 122
• Miscellaneous COL: 133.5

Despite loving the state, the high cost of living there is a major turnoff for Patel.

“Hawaii is known for having exorbitant living expenses,” she said. “Due to the island state’s need to import a large number of goods and services, prices have increased. When it comes to grocery expenses, this is particularly clear.”

In her experience, basic necessities like milk, bread and vegetables are much more expensive in Hawaii than they are in other states.

According to Numbeo , grocery prices in Honolulu are 6.6% higher than they are in New York City — another U.S. location known for its excessively high prices. Here are some prices of common groceries:

• $7.64 for a gallon of milk
• $6.02 for a loaf of bread
• $9.03 for a pound of cheese
• $4.05 for a head of lettuce
• $2.73 for a 1.5-liter bottle of water

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Expensive Utilities

Not only are costs already on the higher side in Hawaii, but the weather is another consideration for Patel — specifically its impact on the utility bill.

“Since most households require air conditioning, the warm and muggy weather [can] result in higher utility costs,” she said.

Basic utilities for a 915-square-foot apartment cost over $304 a month in Honolulu. However, the cost of utilities can go up to about $600 a month — a significant expense for anyone, much less those living on a fixed income.

High Costs and Lower Incomes

Using 2022 data, the U.S. Bureau of Labor Statistics found that the average retiree brings in around $47,815 a year after taxes. While many retirees do earn more than that through a variety of means — from Social Security to retirement plans — it’s not always enough to offset the higher costs in Hawaii.

The BLS also found that the average household in Honolulu spent around $74,965 in 2021-22. While this does account for all types of households, including those with kids and a mortgage payment, there’s still a clear discrepancy between income and costs.

For Patel, this is a major concern. The increased costs in Hawaii can quickly pile up, particularly for those on a fixed income.

“Even though I adore Hawaii, I would prefer to retire in a less expensive place that yet has all the same benefits like a warm climate and a vibrant local community,” she said.

Expensive Healthcare

As MERIC found, the cost of healthcare is higher than the national average. While the state does boast high-quality healthcare in many areas, Patel’s main concern is getting quick access to it in an emergency situation — something many older retirees have to consider when choosing where to settle.

Expensive To Travel

Being such a remote location, at least as far as the mainland is concerned, is a double-edged sword. On the one hand, it can be quite peaceful. On the other, having to fly to and from the mainland can be pricey. For Patel, this is something to avoid.

That said, she does see the appeal in the state for other retirees.

“Hawaii does have certain appealing retirement characteristics,” she said. This includes a calm and easygoing lifestyle, beautiful scenery and a strong feeling of community.

This article originally appeared on GOBankingRates.com : I Lived in Hawaii: 5 Financial Reasons I Won’t Retire There