Virginia comes out Number 1 in new research that ranks states on their attractiveness for pre-retirees as they save and prepare for the challenges ahead in retirement. The research was done by the LPL Research Retirement Index, from LPL Financial. This information is found at Commonwealth Daily, the Daily News for Virginia Real Estate Professionals from Virginia from Virginia Association of Realtors. It was posted on 7/15/15 by Christine Hodges, Chief of Marketing & Communication.
This new index is important because most other retirement indexes examine how people are doing in retirement as opposed to looking at those people saving for retirement, according to David Reich, Executive Vice President Head of Retirement Partners at LPL. Reich believes that this retirement index is important because it starts the discussions with younger people about the importance of saving for retirement.
The research focuses on six factors to evaluate the overall ability of each state’s residents to prepare for retirement. Virginia was ranked as the top state for pre-retirees and New York was ranked as the worst state. However, this index does not indicate whether a particular state is a good state to relocate to in retirement.
The states were ranked on these six main categories: 1) Financial, 2) Healthcare, 3) Housing, 4) Community Quality of Life, 5) Employment & Education, and 6) Wellness. According to the article, a poor rating by the index does not necessarily mean that you should immediately move to a state with a better ranking, but instead it should make you step back and review your own retirement preparedness. Are you saving enough money? Do you have good job prospects in your area? How are the healthcare and education systems? Do you feel happy in your current situation? The article emphasizes that perhaps the best decision for you is to continue living in your current state but to place a greater amount of focus on a certain aspect of your life that poses a risk to your retirement preparedness.
For example, someone living in a state with a poor healthcare rating for pre-retirees may want to consider saving more each year for healthcare expenditures, enrolling in a more comprehensive healthcare insurance plan, or taking advantage of an HSA account to meet unexpected healthcare costs. Of course, before you make any changes to your lifestyle, consult a retirement planning expert to make sure that the decision fits into your overall retirement income plan.
All in all, this is excellent news for Virginia. A ranking of Number 1 certainly supports the fact that Virginia is a great place to live.
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