Where should clients retire early?
More than half of Americans don’t know if they’ll be able to live comfortably through retirement.
Making matters worse is approximately one in three are preparing to retire early — meaning they will face longer time horizons and need larger nest eggs saved up to last through their golden years, according to new data from Northwestern Mutual.
One way to help clients looking to leave work-life early is to find a more cost-effective place to retire, so savings can last even longer. Keep in mind, it’s also likely that clients will want to live in a city with a high concentration of other residents their age.
A study by Kiplinger analyzed cities around the country to determine which have the most favorable conditions for early retirees. Some of the most important factors to consider: how favorable are the tax laws and how high are the cost-of-living expenses.
The study also looked at the economic health, average household income and the demographics of the population. Cities with higher concentrations of residents between the ages of 45 and 65 were prioritized in the ranking. The national average for the age group is 26.1% of a city's popoulation, according to the data.
The overall tax picture of each state was also ranked from least tax friendly to most tax friendly, based on factors like retirement income, property and tax breaks for seniors.
Data was collected from the Council for Community and Economic Research, Sperling's Best Places, U.S. Census Bureau, HealthView Services, Mercatus Center at George Mason University and United Health Foundation.