The average retirement age in the United States is 62, but there is a growing trend of people retiring early. In fact, the number of people retiring before age 60 has increased by more than 50% since the 1990s.
There are a number of reasons why people are choosing to retire early. Some people may have saved enough money to retire early, while others may be retiring due to health problems or because they want to pursue other interests, such as these 5 popular retirement activities.
Whatever the reason, retirees are increasingly choosing to live in states that offer a variety of benefits, such as a low cost of living, mild weather, and access to quality healthcare.
Cheap Insurance researched the 10 states with the youngest retirees in the United States, based on data from the U.S. Census Bureau. We will also provide some information about each state, such as the average retirement age, cost of living, climate, and car insurance cost.
Key Takeaways:
- The average retirement age in the United States has been declining in recent years.
- These ten states have a number of factors in common that make them attractive to early retirees, including low cost of living, favorable tax laws, mild weather, and abundant amenities.
- Some of these states have no income tax for retirees, which can save retirees a significant amount of money.
- Many of these states are known for their outdoor recreation opportunities, which can appeal to active retirees.
Utah
Utah has the youngest average retirement age in the United States, at just 60.2 years old. The state is also home to a large population of young adults, with over 30% of the population under the age of 18. Utah is a popular retirement destination due to its low cost of living, mild winters, and proximity to national parks.
- Average cost of living index: 94.2
- Average annual income: $66,680
- Average temperature: 53.4°F
- Climate: Humid continental
- Average annual cost of car insurance: $1,955
Alaska
Alaska has the second-youngest average retirement age in the United States, at 60.3 years old. The state is known for its beautiful scenery, abundant wildlife, and natural resources. Alaska is also a popular retirement destination for people who are looking for an active lifestyle, as there are many opportunities for hiking, fishing, and hunting.
- Average cost of living index: 128.2
- Average annual income: $71,530
- Average temperature: 39.9°F
- Climate: Subarctic
- Average annual cost of car insurance: $1,946
Texas
Texas has the third-youngest average retirement age in the United States, at 60.5 years old. The state is known for its diverse economy, low taxes, and warm weather. Texas is also a popular retirement destination for people who are looking for a low cost of living.
- Average cost of living index: 97.8
- Average annual income: $63,120
- Average temperature: 67.7°F
- Climate: Humid subtropical
- Average annual cost of car insurance: $2,938
Georgia
Georgia has the fourth-youngest average retirement age in the United States, at 60.6 years old. The state is known for its Southern hospitality, mild winters, and beautiful scenery. Georgia is also a popular retirement destination for people who are looking for a low cost of living.
- Average cost of living index: 95.9
- Average annual income: $59,140
- Average temperature: 63.7°F
- Climate: Humid subtropical
Average annual cost of car insurance: $1,720
Colorado
Colorado has the fifth-youngest average retirement age in the United States, at 60.7 years old. The state is known for its Rocky Mountains, beautiful scenery, and abundance of outdoor recreation opportunities. Colorado is also a popular retirement destination for people who are looking for a healthy lifestyle.
- Average cost of living index: 105.8
- Average annual income: $67,820
- Average temperature: 49.5°F
- Climate: Humid continental
- Average annual cost of car insurance: $2,291
Oklahoma
Oklahoma has the sixth-youngest average retirement age in the United States, at 60.8 years old. The state is known for its low cost of living, friendly people, and mild winters. Oklahoma is also a popular retirement destination for people who are looking for a relaxed lifestyle.
- Average cost of living index: 90.8
- Average annual income: $56,070
- Average temperature: 61.1°F
- Climate: Humid continental
Average annual cost of car insurance: $2,291
Idaho
Idaho has the seventh-youngest average retirement age in the United States, at 60.9 years old. The state is known for its natural beauty, abundance of outdoor recreation opportunities, and low cost of living. Idaho is also a popular retirement destination for people who are looking for a quiet and peaceful lifestyle.
- Average cost of living index: 94.3
- Average annual income: $58,810
- Average temperature: 49.7°F
- Climate: Semi-arid
Average annual cost of car insurance: $1,021
Wyoming
Wyoming has the eighth-youngest average retirement age in the United States, at 61 years old. The state is known for its wide-open spaces, natural beauty, and abundance of outdoor recreation opportunities. Wyoming is also a popular retirement destination for people who are looking for a tax-free lifestyle.
- Average cost of living index: 92.5
- Average annual income: $67,480
- Average temperature: 46.5°F
- Climate: Semi-arid
Average annual cost of car insurance: $1,341
North Dakota
North Dakota has the ninth-youngest average retirement age in the United States, at 61.1 years old. The state is known for its friendly people, low cost of living, and strong economy. North Dakota is also a popular retirement destination for people who are looking for a safe and secure lifestyle.
- Average cost of living index: 92.2
- Average annual income: $59,440
- Average temperature: 42.6°F
- Climate: Humid continental
- Average annual cost of car insurance: $1,319
South Dakota
South Dakota has the tenth-youngest average retirement age in the United States, at 61.2 years old. The state is known for its Mount Rushmore National Memorial, Badlands National Park, and low cost of living. South Dakota is also a popular retirement destination for people who are looking for a relaxed and peaceful lifestyle. South Dakota also hosts the hugely popular annual Sturgis Motorcycle Rally every summer, drawing upwards of 50,000 motorcycle riders to the event.
- Average cost of living index: 91.9
- Average annual income: $57,220
- Average temperature: 46.1°F
- Climate: Humid continental
Average annual cost of car insurance: $1,821
Conclusion
These are the 10 states with the youngest retirees in the United States. These states offer a variety of benefits to retirees, such as a low cost of living, mild weather, and access to quality healthcare.
Disclosures:
Average Cost of Living index, annual income, temperature, and climate: Please note that these are just averages, and the actual cost of living, annual income, temperature, and climate can vary depending on the specific location within a state.
Average Annual Car Insurance Cost: It is important to note that these are averages, and your actual auto insurance cost may vary depending on a number of factors, including your age, driving record, vehicle type, and location within the state. It is always a good idea to shop around for quotes from multiple insurance companies to get the best rate.
Sources:
- SmartAsset: The Best States for Early Retirement
- United Van Lines: 2022 Annual National Movers Study
- Extra Space Storage: The Top 25 Cities With the Most People Aged 65 and Up
- U.S. Census Bureau: American Community Survey
- MoneyTalks News: Here’s the Average Retirement Age in Your State
- The Insurance Information Institute (III)
