Maybe the slogan should change to “Sweet retirement home, Alabama.”
After all, a recent study ranked the Yellowhammer State as the eighth-cheapest state for retirement.
The study conducted by NetCredit found that the cost of retirement on average in Alabama was $536,348 for a 15-year period.
Alabama’s neighbor Mississippi was found to be the cheapest state to retire in with an average cost of $469,517, while the state of Hawaii was the most expensive place to retire in with a cost of $893,400.
The retirement calculations were based on the average American retirement age of 61 years, according to Gallup, and the average American life expectancy of 76.15 years, according to the CDC’s National Center for Health Statistics.
There are 181.8 months between the average retirement age and average life expectancy. So, the monthly living costs in a country or state were multiplied by 181.8 to determine the retirement cost, the study said.
To allow for a more comfortable retirement, this final figure was then increased by 20%. None of the other values, such as annual or monthly costs, include the 20% increase, the report said.
The average cost of retirement in the U.S. in 2022 was $702,330.47.
Austen Shipley is a staff writer for Yellowhammer News.