It’s no secret that New Jersey is an expensive state to live in. A new report by Investopedia highlights that no demographic is safe from high prices in the Garden State, finding that New Jersey is the costliest state for retirees in the country.
The Numbers
Your average American couple requires around $1.16 million saved to retire comfortably. In New Jersey, that number jumps to $1,329,000—matched only by Hawaii, which also lands at the top of the list.
These numbers paint a dire picture—New Jersey retirees need about $170,000 more than a typical American couple to retire with breathing room.
But, what goes into the price tag? Annual expenses in New Jersey are estimated at $90,900, compared to the $84,000 average in the country. Social Security is expected to offset approximately $37,700, leaving a gap around $53,100 to cover from savings.
Other states and districts near the top include California, D.C., New York, Washington, Massachusetts, Connecticut, and Maryland.
Near the bottom of the list—the cheapest states to retire in—we see North Dakota, Arkansas, Mississippi, West Virginia, and Iowa.
Why New Jersey Costs So Much
The answer to why New Jersey costs so much is actually pretty easy to answer: it’s housing, stupid!
Housing is the single biggest driver, not just in New Jersey, but nationally, accounting for around 27% of a couple’s retirement spending. However, New Jersey’s property tax burden—among the highest in the country—and its exorbitant property values skyrocketed it to the top of the list.
Relief Exists, But It’s Shrinking
New Jersey’s flagship senior property tax relief program, Stay NJ, cuts eligible seniors’ property tax bills in half, up to a maximum benefit of $6,500 a year.
However, recent changes to the program have some seniors seeing reduced benefits. Under the state’s most-recent budget, Stay NJ was restructured, now tiered by income:
- Seniors earning $100,000 or less: up to $6,500
- Seniors earning $100,001 – $150,000: up to $5,000
- Seniors earning $150,001 – $200,000: up to $4,000
Then there’s the Senior Freeze, which according to the New Jersey government website, “reimburses eligible senior citizens and disabled persons for property tax or mobile home park site fee increases on their principal residence (main home).”
These programs are important. State legislators seem to recognize the price-driven difficulty that comes with retiring in New Jersey, and have taken a shot at easing the pain. Whether it makes a difference in the long run is anyone’s guess.
For now, the numbers are the numbers. New Jersey is the most expensive state to retire in the country. Looks like New Jersey-born seniors settling down Florida is a tradition that’s not ending anytime soon.
Peter Candia is the Food + Drink Editor at New Jersey Digest. A graduate of The Culinary Institute of America, Peter found a passion for writing midway through school and never looked back. He is a former line cook, server and bartender at top-rated restaurants in the tri-state area. In addition to food, Peter enjoys politics, music, sports and anything New Jersey.
