6 Reasons You Need at Least $844K (Plus Social Security) To Retire in New Jersey

Are you a New Jersey resident planning to retire in the state? Have you wondered if you have enough saved or if it makes more sense to move somewhere else instead?

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According to data from the Bureau of Labor Statistics, you’ll need at least $844,130.00 saved for a 20-year retirement in New Jersey.

Here’s why.

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1. You Will Need At Least $42,206.49 Plus Social Security Each Year

According to the Bureau of Labor Statistics, the cost of living for the average adult 65 years and over in New Jersey is $63,773.25 per year. New Jersey is one of the more expensive states in the U.S. — the annual cost of living is 10% higher than the national average of $57,818 per year.

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The average Social Security benefit in the U.S. is $21,567. This means that the average American 65 years and over will need at least $42,206.49 in addition to their Social Security to live in New Jersey. For a 20-year retirement that comes out to $844,130 in savings.

If you want to save for a 25-year or 30-year retirement, you’ll need at least $1,055,162 or $1,267,462 saved, respectively.

2. Groceries in New Jersey Will Cost You $4,854.56

In New Jersey, you’ll spend around 1.2% more on groceries than the national average of $4,797. This is only a slight increase, meaning you won’t be much worse off than most of the country when buying food.

To save money in this category, consider using coupons, buying store brands and prioritizing sales. Joining a warehouse club like Costco or Sam’s Club may make sense if your diet justifies buying in bulk.

Local farmers’ markets may offer fresh produce at competitive prices, helping you budget while keeping your food quality as high as possible.

3. Housing in New Jersey Costs Retirees $14,778.69

Annual housing costs in New Jersey are significantly higher — 26.4% above the national average of $11,692. If it’s an option, downsizing significantly reduces your maintenance costs, taxes and utility bills.

If you’re renting, you could explore traditionally cheaper areas or consider senior-specific housing options, offering benefits like community activities and shared amenities. Always look for energy-efficient homes or apartments — these can lower your utility bills during New Jersey winters.

4. Annual Utilities in New Jersey Cost Retirees $4,651.13

Your utility bills in New Jersey will be about 9.8% higher than the national average, standing at $4,236. You may be able to bring these costs down through energy-saving measures.

Simple adjustments like installing programmable thermostats and sealing leaks around doors and windows reduce heating and cooling costs.

You may also save money by comparing rates from different utility providers or looking into bundled services.

5. Transportation Costs in New Jersey are $5,091.29

Expect to pay about 3% more for transportation in New Jersey than the national average of $4,943, including costs associated with owning and operating a vehicle. To cut down on these expenses, consolidate errands into fewer trips and keep up with regular vehicle maintenance to avoid more costly repairs later.

If you live near public transit lines or in a walkable area, taking advantage of these options reduces your need for a car, saving you money on gas, insurance and maintenance.

6. New Jersey Healthcare Costs Retirees $7,570.16

Healthcare is where New Jersey costs are closest to the rest of the U.S. New Jersey healthcare is only 0.3% more expensive than the national average of $7,540.

Since healthcare becomes a major expense as you age, planning for more than the basics is important. Regular preventive care helps ward off more significant expenses, so make sure to use all the preventive services your insurance provides. Also, try to research the costs of your medications — some pharmacies may offer generic drug programs that provide substantial savings.

Methodology: In order to find out exactly how much you need to retire in your state, GOBankingRates found the annual cost of expenditures for a retired person in each state by multiplying the 65-year and older expenditures from the Bureau of Labor Statistics 2022 Consumer Expenditure Survey by the cost of living index for each state from the Missouri Economic Research and Information Center’s Q3 2023 cost of living series. To find how much money a retired person would need to save, we divided each state’s annual expenditures, minus the annual Social Security income as sourced from the Social Security Administration’s Monthly Statistical Snapshot, March 2022, by 0.0333%, 0.04%, and 0.05% assuming 20, 25, and 30 years of retirement, respectively. All data was collected and is current as of January 8, 2024.

This article originally appeared on GOBankingRates.com : 6 Reasons You Need at Least $844K (Plus Social Security) To Retire in New Jersey