Alabama ranks within top five states for comfortable retirement

HUNTSVILLE, Ala. (WHNT) — If you’re already planning for your golden years, you might not have to look far.

Alabama has just been named one of the top states for affordable retirement. News 19’s Nawaal Jalill breaks down what makes the yellowhammer state so desirable.

from lower housing costs to cheaper groceries and utilities, Alabama has ranked 4th in a study revealing the states where seniors need the least to retire comfortably. Researchers in a Caring.com study looked at everyday costs like transportation, healthcare, and groceries.

Are you prepared for those spending habits even after you retire?

The study shows retiree’s in Alabama need just under $62,000 annually to live comfortably in the state. Experts say low property taxes and a lower cost of living compared to other states, are some of the factors that contribute to this ranking.

For retirees living on a fixed income, every dollar counts. That’s why many say Alabama’s cost of living makes a difference, from lower gas prices to cheaper prices at the store, to affordable housing options in smaller towns or suburbs.

Micah Rigoni, a financial advisor in Hartselle, says its crucial to speak with an advisor when it comes to saving and planning for retirement.

“It’s hard to retire without a plan so its important to make sure you have both of those together,” said Rigoni.

Rigoni says seniors should always account for unexpected costs like healthcare, housing, and taxes when preparing for their retirement. Rigoni told News 19 that inflation is a huge factor that can be overlooked when planning for retirement.

If you have a fixed income that’s not rising with inflation, you need to have a plan incase your dollar loses value. He also says life insurance if often overlooked when it comes to retirement planning, but its something that should also be accounted for.

“You need to make sure you’re making the most out of your opportunities,” added Rigoni.

Even in a low cost state like Alabama, it’s still smart to start planning early, and to make sure your savings and health-care plans can keep up with expenses changing. While Alabama’s affordability stands out, experts say the real key to a happy retirement isn’t just where you live, its how you plan for it!