NJ is One Of 5 States With High Taxes And A High Cost of Living

Two big expenses for residents are taxes and the "COL" cost of living. These two expenses are even more important when you retire and try to live on your retirement funds. Some folks have more than others when it comes to retirement; sadly, some do not plan ahead.

 

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GoBankingRates.com has published an article that lists the five worst states for retirement based on "high taxes" and a "high cost of living". According to the article, "Unless money is no object, the cost of living is probably one of your top concerns when it comes to choosing where to retire. Not only do certain states have higher taxes than others, but the overall cost of living can be quite high as well."

 

 

Living in New Jersey, we know that certain parts of the state have very stiff taxes, especially property taxes. Our cost of living can be expensive, one expense that comes to mind is auto insurance, which is always a large expense.

 

According to GoBankingRates.com, "As Ellison pointed out, New Jersey might not be the best retirement destination either. The state ranks 45th highest in terms of overall COL. Everything, including healthcare, is more expensive than in other parts of the country. 

 

In addition, "New Jersey has a graduated state income tax ranging from 1.4% to 10.75%. When you tack on federal income tax, that’s a hefty chunk out of your money. The state’s effective property tax rate is also high at 2.08%."

 

TOP 5 STATES TO AVOID FOR RETIREMENT - GOBANKINGRATES.COM

  • California
  • Massachusetts
  • New Jersey
  • Connecticut
  • New York

 

So be sure to add these additional topics to your retirement conversation, taxes, and cost of living, when thinking about where to spend your golden years.

 

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