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Planning for Retirement as a Couple: How to Determine a Good Monthly Income

Happy Retirement party for senior adults
February 27, 2024

Retirement marks a significant milestone in life, a time when individuals seek to savor the fruits of their labor and embrace a newfound sense of freedom. Yet, amidst the excitement of retirement planning, one crucial question often looms large: What is a good monthly retirement income for a couple? Understanding this pivotal question requires a nuanced approach, considering many factors such as lifestyle preferences, geographic location, and healthcare needs.

As couples embark on this journey, it's essential to navigate the financial landscape with clarity and foresight. To shed light on this matter, Colonial Van Lines, in collaboration with experts in retirement planning, delves into the intricacies of determining a comfortable monthly retirement income for couples. Leveraging research data on the average monthly costs for Assisted Living, Memory Care, and Independent Living communities across all 50 states, we aim to provide valuable insights and guidance.

Look Forward to Retirement

Whether you're on the brink of retirement or simply planning ahead, this guide promises to be a valuable resource in charting a course towards financial security and peace of mind in your golden years.

In looking at a recent national survey published by A Place for Mom in November 2023, Colonial Van Lines recognized that moving after retirement could be a best solution for many families. We wanted to provide our customers with the best information available for state-by-state average monthly costs across senior living care types. Below is some of the coordinated research from A Place for Mom

State

Assisted Living

Memory Care

Independent Living

Alabama

$3,637.00

$4,862.00

$2,376.00

Arizona

$4,406.00

$5,895.00

$2,738.00

Arkansas

$4,130.00

$5,400.00

$2,529.00

California

$5,088.00

$6,063.00

$3,466.00

Colorado

$5,130.00

$6,246.00

$3,116.00

Connecticut

$6,165.00

$8,248.00

$3,885.00

Florida

$4,195.00

$4,995.00

$3,067.00

Georgia

$3,995.00

$4,450.00

$2,995.00

Idaho

$4,600.00

$5,350.00

$2,907.00

Illinois

$5,100.00

$6,595.00

$2,701.00

Indiana

$4,315.00

$5,547.00

$2,550.00

Kansas

$5,130.00

$6,504.00

$2,590.00

Kentucky

$4,100.00

$5,000.00

$3,000.00

Louisiana

$3,830.00

$4,806.00

$2,469.00

Maryland

$5,885.00

$7,000.00

$3,895.00

Massachusetts

$6,460.00

$8,248.00

$3,770.00

Michigan

$5,098.00

$5,995.00

$2,635.00

Minnesota

$4,655.00

$7,110.00

$2,518.00

Mississippi

$3,745.00

$4,805.00

$3,375.00

Missouri

$4,637.00

$6,400.00

$2,905.00

Montana

$4,907.00

$7,515.00

$3,020.00

Nebraska

$4,913.00

$6,099.00

$3,098.00

Nevada

$5,162.00

$6,163.00

$3,285.00

New Hampshire

$7,200.00

$8,623.00

$4,193.00

New Jersey

$6,690.00

$8,200.00

$3,340.00

New Mexico

$4,108.00

$4,900.00

$2,813.00

New York

$5,504.00

$7,395.00

$3,300.00

North Carolina

$4,950.00

$6,000.00

$3,280.00

Ohio

$4,800.00

$5,908.00

$2,872.00

Oklahoma

$4,458.00

$5,527.00

$2,495.00

Oregon

$5,595.00

$7,135.00

$2,995.00

Pennsylvania

$4,848.00

$6,050.00

$3,060.00

Rhode Island

$5,180.00

$6,795.00

$4,492.00

South Carolina

$4,158.00

$4,400.00

$2,919.00

Tennessee

$4,250.00

$5,182.00

$2,679.00

Texas

$4,715.00

$5,656.00

$2,640.00

Utah

$4,095.00

$4,795.00

$2,710.00

Virginia

$5,160.00

$6,090.00

$3,248.00

Washington

$5,125.00

$7,160.00

$3,480.00

West Virginia

$4,395.00

$5,803.00

$3,020.00

Wisconsin

$5,235.00

$6,630.00

$2,938.00

As we explore the question of what constitutes a good monthly retirement income for couples, it's crucial to consider not only the financial aspect but also the broader lifestyle considerations that come into play. We've examined the average costs of senior care across various states, shedding light on the financial realities retirees may face when it comes to healthcare and housing expenses. 

However, determining the ideal retirement income isn't solely about crunching numbers—it's also about finding the perfect place to call home during the golden years. Transitioning from the data on average cost of living by state across senior care types, let's delve into the key factors that retirees weigh when deciding where best to live in retirement. From climate preferences to proximity to family and healthcare access, each aspect plays a pivotal role in shaping retirees' relocation decisions and ultimately influences their financial planning for retirement.

family-support-in-retirement-scaled

Cost of Living

Retirees may choose to relocate to areas with a lower cost of living to stretch their retirement income further. This includes factors such as housing costs, taxes, healthcare expenses, and everyday necessities.

Lowest Cost of Living States

Highest Cost of Living States

Mississippi

Hawaii

Oklahoma

Massachusetts

Kansas

California

Alabama

New York

West Virginia

Washington


Climate and Weather

Many retirees opt to move to regions with a more favorable climate, whether it's warmer weather for year-round outdoor activities or milder temperatures for health reasons.

City, State

Avg. Temp Low

Avg. Temp High

Round Rock, TX

35

95

Jackson, MS

35

92

Charleston, SC

43

88

Phoenix, AZ

46

106

Cape Coral, FL

54

92


Healthcare Access

Access to quality healthcare services is crucial for retirees, especially as they age. Proximity to hospitals, medical specialists, and healthcare facilities often influences relocation decisions.

State

Rationale

Connecticut

100+ public parks and lowest % of uninsured seniors (3%) when compared to US averages. 

Pennsylvania

No taxes on retirement income for residents

Massachusetts

Lowest % of uninsured seniors, large variety of nursing homes and hospice providers

couples-investing-for-retirement


Lifestyle Preferences

Retirees often seek communities that align with their lifestyle preferences and interests. This can include access to recreational activities, cultural amenities, dining options, and social opportunities.


City, State

Community

Rationale

Las Vegas, NV

Sun City Summerlin

2,530-acre community with 7,700 single family homes with views of the Las Vegas Strip & mountains. 3 Golf courses and 80+ clubs to join

Ocala, FL

On Top of the World

3 Golf courses, sports clubs, swimming pools, fitness studios and 175+ resident clubs to join.

Laguna Woods, CA

Laguna Woods Village

10 Minutes away from the ocean, 18,500 senior residents enjoying 2 golf courses, 5 swimming pools, arts center, tennis courts. Choose from 80 residential floor plans. 

Villages, FL

The Villages

3,000 Activities and clubs available, plus 50+ golf courses along with town shops, restaurants and nightly entertainment.

Summerville, SC

Del Webb Charleston at Nexton

Gated community within minutes of Charleston. Resort-style amenities, fitness center, swimming pools, pickleball courts and clubhouses.


Family and Social Support

For some retirees, proximity to family members, friends, or social support networks plays a significant role in their decision to move. Being closer to loved ones can provide emotional support and assistance as they age. Learn more about this list of top retirement cities. 


City, State

Walkability Score

Num. of Nearby Airports

Harrisburg, PA

68

5

Reading, PA

72

3

Sarasota, FL

52

5

Melbourne, FL

33

4

Toledo, OH

46

4

Green Bay, WI

42

3

Asheville, NC

37

1

Fort Collins, CO

37

1

Rochester, NY

61

3

Albuquerque, NM

43

2

retirement-couples-prioritize-safety-scaled

Housing Options

The availability of suitable housing options, such as age-restricted communities, senior apartments, or assisted living facilities, may influence retirees' relocation choices, especially if they're downsizing or seeking specific amenities.

Housing Option

Aging in Place

May require home renovations to support in-home care and organizational changes

Moving in With the Kids

The key to making these arrangements work is to set clear guidelines from the start. Make sure everyone has the same expectations about communal living, personal space and bill sharing.

House Sharing

Seniors who still own a home could find a housemate to cover some of their living expenses, and renters can halve their monthly bills. 

Independent Living Communities

These buildings may have some amenities such as a pool or gym, but they don’t offer any additional services such as meals or transportation.

Assisted Living

These properties may have individual apartments for residents along with communal spaces for meals and social activities. Staff may help with a variety of tasks related to housekeeping, personal hygiene and medication reminders.

Life Plan Communities

These communities may have contracts that are set up under different terms. Some require the purchase of a property in the community while others charge an entrance fee and then assess a monthly charge. Depending on the contract, that charge may stay the same regardless of the level of care provided or it could rise as a resident's needs increase. If a resident reaches the point where they can no longer afford that rate, some communities have foundations or assistance programs to cover the cost

Subsidized Housing

Housing for seniors based on income may be available through a variety of local, state and federal housing programs. However, subsidized housing programs at all levels can be complex to navigate. Each may have its own eligibility criteria and application process.

Transportation and Accessibility

Easy access to transportation options, including public transit, airports, and major highways, can enhance retirees' mobility and independence, enabling them to stay engaged in activities and visit loved ones more easily.

Metro Areas

Rationale

Washington DC-Arlington, VA

93% of public transit stations are ADA compliant

Philadelphia-Camden-Wilmington

53% of public transit stations are ADA compliant

New York-Newark-Jersey City

53% of public transit stations are ADA compliant

San Francisco-Oakland-Berkeley

93% of public transit stations are ADA compliant

Portland-Vancouver-Hillsboro

100% of public transit stations are ADA compliant

retirement-income-for-a-couple-scaled

Tax Considerations

Retirees often consider the tax implications of relocating to different states, including income taxes, property taxes, and estate taxes. States with favorable tax policies for retirees may be more attractive options.


State

Rationale

Mississippi

Of all the states that won’t take a cut of traditional retirement income, Mississippi has the lowest property taxes, with a median tax bill of $1,052.

Tennessee

Along with no state income tax, Tenn also boasts some of the lowest property tax bills in the country.

Wyoming

No state income tax, Wyoming also does not take estate or inheritance taxes. 

Nevada

Another state without state income tax, lower than average property tax rates, along with no estate or inheritance taxes.

Florida

Florida, all around, offers warm weather plus no state income tax, homestead tax exemption on entire taxable value of their property, along with no estate or inheritance taxes. 

things-to-do-in-retirement-scaled

Safety and Security

Retirees prioritize safety and security when choosing a new location to call home. Factors such as crime rates, emergency services, and community safety measures can influence their decision-making process.

City, State

Rationale

Cape Elizabeth, ME

Crime rate: 1.05 per 1,000 residents
Population: 9,580
Average Cost of Living: 12.5% Higher than National Avg. 

Ridgefield, CN

Crime rate: 1.96 per 1,000 residents
Population: 7,216
Average Cost of Living: 42% Higher than National Avg. 

Monroe Township, NJ

Crime rate: 2.38 per 1,000 residents
Population: 48,012
Average Cost of Living: 24.7% Higher than National Avg. 

Lewisboro Town, NY

Crime rate: 2.57 per 1,000 residents
Population: 12,015
Average Cost of Living: 57% Higher than National Avg. 

Sleepy Hollow, NY

Crime rate: 2.83 per 1,000 residents
Population: 14,718
Average Cost of Living: 63% Higher than National Avg. 

By carefully weighing these factors, retirees can make informed decisions about where to live during their retirement years, ensuring a fulfilling and comfortable lifestyle that meets their needs and preferences.

In conclusion, determining a suitable monthly retirement income for couples involves a multifaceted approach that extends beyond mere financial considerations. While the data provided shed light on the average costs of senior care across various states, it's essential to recognize that the ideal retirement destination is deeply personal and influenced by a myriad of factors.

Take the First Step

From climate preferences to proximity to family and healthcare access, retirees weigh various aspects when deciding where to spend their golden years. Lifestyle preferences, housing options, transportation accessibility, tax considerations, and safety and security all play pivotal roles in shaping relocation decisions.

Colonial Van Lines has strived to provide comprehensive insights into the intricacies of determining an optimal retirement income for couples. By delving into these key factors and offering actionable guidance, we aim to empower retirees to make informed choices that align with their unique needs and aspirations.

As you embark on this journey, we encourage you to carefully consider the factors discussed in this article, leveraging the provided data and insights to chart a course towards a fulfilling and comfortable retirement lifestyle. With thoughtful planning and foresight, you can pave the way for financial security, peace of mind, and meaningful experiences in your retirement years.

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