Thursday, May 26, 2016
Retirement Rules of Thumb
For longtime readers of this blog, this will be pretty familiar material. However a recent Bankrate survey of replacement income in retirement indicates that 47 states currently fail to make the grade on replacement income. Only Alaska, Hawaii, and South Carolina get a passing grade. Alaska and Hawaii are peculiar situations involving unconventional life styles, state government programs and large retired military and government employee populations with unusually generous pensions. South Carolina has more folks with pensions than is common in the 48 continental states. When combined with low taxes and a low cost of living, South Carolina comes up a winner. In general high tax/high cost of living states appear at the bottom of the list and low tax/low cost of living states come closer to a passing grade. However, there are some surprises in the list.