Bankrate study: Seniors' incomes in 47 states don't go far enough

by Jill Cornfield, Bankrate.com, May 23, 2016 (excerpts)

If you want to survive and even thrive in retirement, most financial advisers believe you need at least 70% of the income that you had before you retired. But seniors in most states are falling short, a Bankrate study shows. We found that retirement incomes are exceeding the 70% target in just 3 states: Hawaii, Alaska and South Carolina….

Bankrate's analysis uses data from the U.S. Census Bureau's most recent American Community Survey. For each state and Washington, D.C., we divided the median annual household income for those who are 65 and older by the median annual household income for those in their later working years, between ages 45 and 64.

The resulting ratios of pre-retirement income that seniors are replacing range from a high of 72.59% in Hawaii to a low of 48.22% in Massachusetts. The national average is 60.27%….

Say 'aloha' to a good retirement

Hawaii's host of conflicting factors makes that state tough to understand. Jack Kerr, the founder of Blue Skies Financial Planning in Kailua Kona, notes that the cost of living (the highest in the U.S.) is a challenge, although seniors do receive tax breaks, and health care costs for the elderly seem to be below the average.

The labor climate in Hawaii might affect retirement finances, says Leo Goeas, a former NFL player and now a financial adviser with Raymond James & Associates in Honolulu.

A high percentage of Hawaiian residents are government workers, and many private companies are unionized, giving workers retirement pensions. About 1 in 5 workers in Hawaii is a union member, well above the national average of 11%, according to the U.S. Bureau of Labor Statistics. And, unlike many other states, Hawaii has retained a pension benefit for government workers.

Hawaii's family factors

The high cost of living makes multi-generational living extremely common in Hawaii, Goeas says, with 3 generations sometimes living in one house to cut costs.

The state culture is unique and tends to be less focused on spending money. People tend to value experiences and activities over consumption," says Peter Kay, a Honolulu resident who writes a blog called Living in Hawaii. Instead of shopping or dining out, they prefer hiking or visiting a beautiful national park. Dining out, expensive groceries and pricier cultural events may cede to the beach or free tai chi at the mall.

"You live in a much smaller home," Kay adds. "If you have a car, maybe you'll have a smaller, more efficient car that you hold on to for longer."

The retiree's journey emphasizes the things that matter: "The joy and satisfaction in your later life are more qualitative than quantitative," he says….

read … Hawaii Seniors Income