If you’re coming up upon retirement and considering moving to Utah, you may wonder how much money you’ll need to have saved up. This article will look at how much money you need to retire in Utah!
The good news is that Utah is a very affordable state, and your retirement income will go a long way.
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Table of Contents
How much money do you need to retire in Utah?
If you’re moving to Utah to retire, you’ll need to have saved up at least $1,000,000. This number may seem high, but it’s achievable if you start saving early and investing wisely.
Your million dollars are needed to cover your living expenses, which we’ll discuss in the next section.
However, everything you will pay will come from your savings, so it’s essential to have a plan and know exactly how much you need.
Related Content: Is Utah a Good Place to Retire? Pros and Cons
What will your money go towards in retirement?
Your living expenses in retirement will be similar to what they are now, but there are a few key areas that you should budget for.
First, you’ll need to account for housing costs. In Utah, the median home price is over $400,000, depending on location. If you plan on buying a home, you’ll need a down payment and money for repairs and maintenance.
You can expect to pay about $1,500 monthly for a one-bedroom apartment if you’re renting.
Next, you’ll need to budget for healthcare costs. Healthcare is always a big expense in retirement, but it’s essential to plan for in Utah.
Utah has a large population of retirees and a limited number of healthcare providers. This combination can lead to higher prices and longer wait times for medical care.
You could budget about $5,000 per year for healthcare costs in Utah. This number will cover your basic needs like doctor’s visits and prescription drugs.
Your costs will be higher if you have a chronic illness or require regular specialist care.
Things that you shouldn’t overlook when budgeting for retirement
1. Don’t forget to account for inflation.
As we’ve recently seen, inflation can significantly impact your retirement savings. No one can predict what inflation will do, but you should plan for at least a 7% annual increase in your cost of living.
2. Don’t underestimate your housing costs.
Housing is one of the most significant expenses in retirement, and it’s essential to factor in things like repairs, maintenance, and property taxes.
3. Don’t forget to budget for travel.
One of the best parts about retirement is that you finally have the time to travel. However, travel can be expensive. Make sure to set aside money in your budget for trips that you want to take.
4. Set aside money for things like going out to eat.
Everyone gets tired of their cooking sometimes. So make sure to budget for nights out and other fun activities that you enjoy.
5. Hobbies are a must now that you have free time.
If you sit around at home all day, you’ll get bored quickly. Make sure to set aside money for hobbies and activities that you enjoy.
Some retirees may be fine for spending 40,000 per year during retirement.
That $40,000 may sound like a lot, but it won’t buy as much as you think. In Utah, the median household income is about $74,000. This means that your retirement income will only be about half of what you’re used to.
So, you can live somewhat comfortably for 25 years if you have a million dollars saved up. Somewhat is the keyword here. You’ll need to be careful with your spending and ensure you don’t outlive your savings.
I dived into the topics of how much you need in general for retirement by creating two other articles that I highly recommend you check out.
1 – The 4% Rule – How Much Money Do You Need To Retire
2- What You Need To Know About The 25x Rule for Retirement
Ideally, you would have at least two million dollars or more saved to live more comfortably.
If you have a spouse, you’ll probably want to have more saved up. And, if you want to travel or do anything else with your retirement, you’ll need more than $40,000 per year.
How much should you have saved by age 65?
There’s no magic number, but the advice was to have 25 times your annual expenses saved by retirement. So, if you make $50,000 annually, you should have $1,250,000 saved.
If you have less than a million dollars saved, you could retire in Utah but may want to look at lower-priced homes.
If you’re in good health and don’t have a physical labor job, you may be able to put off retirement for a few years. This will give you more time to save and reduce the years you’ll need to support yourself.
Working a few extra years may not sound like fun, but it’s better than struggling to make ends meet in retirement.
Even if you scale back and work part-time, that can make a big difference.
Retiring in Utah – Conclusion
If you want to retire comfortably in Utah, you need to have enough money saved up. But the good news is that you have time to save if you’re young!
If you’re not so young, there are still things that you can do to make retirement more comfortable.
No matter your age, the most important thing is to start saving now.
The sooner you start, the more time you’ll have to let your money grow. The more money you save, the more comfortable your retirement will be. Taking advantage of the power of compound interest is one of the most important things to do now.
Make sure you have a plan and start saving now to enjoy your retirement years. You can always check out more articles on our blog to help increase your income while reducing your expenses!
Disclaimer:
We hope the information in this article provides valuable insights to every reader but we, the Biesingers, are not financial advisors. When making your personal finance decisions, research multiple sources and/or receive advice from a licensed professional. As always, we wish you the best in your pursuit of financial independence!
