Pennsylvania, Delaware and New Jersey Cost of Living Revealed

If you're curious how much it costs to live comfortably in Pennsylvania, Delaware and New Jersey, there's a new study out that helps answer that question. The study looks at each U.S. state and how much the cost of living appears to be in those states to determine the most affordable states in which to live. So, if you're looking to relocate or are just curious where your state falls in the general discussion of expensive states to reside, this study is for you.

The new study comes from self storage software company Storeganise, and it "highlights the cost-of-living differences across the country, with some expected high-cost states topping the list, and a few surprising entries in more affordable regions." They add that, "In a time when financial security and comfort are major concerns for Americans, a recent study reveals the hourly and annual income required to live 'comfortably' in each U.S. state."

So, what does living comfortably really mean? It, of course, means different things to different people, but for this study, Storeganise says comfortable means "an income that covers necessities, allows for discretionary spending, and leaves room for savings." They also determined the hourly and annual income needed to live "comfortable" in these areas.

"These numbers highlight just how dramatically the cost of comfortable living can vary across the U.S.," Miles Davies of Storeganise said. "For those in higher-cost states like Massachusetts and California, it takes a significant income just to cover basic needs and set aside a bit for the future. Meanwhile, states in the South and Midwest offer an easier way to financial comfort, with lower housing and general living costs."

Davies added, "Ultimately, the study shows how important it is for individuals and families to understand local costs of living when planning their financial goals. Achieving a comfortable lifestyle looks very different depending on where you are, but it’s possible with informed budgeting and realistic expectations."

The study discovered that New Jersey is one of the most expensive states in which to live, with the hourly wage needed to live comfortably at $45.95 and annual wage $95,569. For Pennsylvania, the hourly wage needed to live comfortably is $40.57 and annual wage is $84,390. For Delaware, the hourly wage needed to live comfortably is $41.66 and annual wage is $86,647.

Massachusetts is the most expensive state. There, residents need an hourly wage of $51.18 or an annual salary of $106,445. West Virginia ranks last, where living comfortably requires just $35.04 per hour or $72,888 per year.

As workers get older and continue on their career paths, in theory, their 401K should reflect that and go up. So, the average and median amount of money that people have in their 401Ks end up being a factor of how long they've worked (their age). It's also, of course, a factor of how much money they make and put into their 401Ks. So, have you ever wondered if you have more or less in your 401K than most people your age?

Let's get into retirement details. According to Fidelity, "The age you plan to retire can have a big impact on the amount you need to save, and your milestones along the way," they state on their website. "The longer you can postpone retirement, the lower your savings factor can be." They add that if you delay saving, your savings will take a longer time to grow.

Also, if you're wondering how much money you need to retire comfortably, that really is different for everyone. You have to look at how you want to live in your retirement. Do you want to have lots of extra money to travel? Or, would you rather retire earlier with less and live a less elaborate lifestyle?

According to Citizensbank.com, you want to have enough money to make up 60% to 100% of your pre-retirement annual income. "This rule of thumb aims to maintain a quality of life similar to the one you enjoy immediately prior to retirement, while keeping in mind the realities of different budget levels per line item, like lower work-related and housing costs likely offset by higher healthcare costs," they explain. They also say that "becoming a 'millionaire' is still an impressive financial milestone, but $1 million today doesn't go nearly as far as it did in 1980, when $1 million had the same buying power as $3.1 million today."

Now, let's get into the question at hand. How does your retirement savings hold up to those in your age group? Here are some details from Vanguard.

In this age group, the average 401K balance is $5,236 and the median is $1,948. You're obviously just getting your feet wet in investing. Some people fresh out of high school or college probably don't have anything in their 401Ks at this point.

In this age group, the average 401K balance is $30,017 and the median is $11,357. This is significantly higher than the under 25 age range. But, it's definitely not enough to retire on. So, keep grinding.

In this age group, the average 401K balance is $76,354 and the median is $28,318. Notice the big difference between average and median. Obviously, with the median, that means half of people in that age group have less than $28,318 and half have more.

In this age group, the average 401K balance is $142,069 and the median is $48,301. This is another one where the average and median are very different. Half of people in that age group have less than $48,301 and half have more.

In this age group, the average 401K balance is $207,874 and the median is $71,168. Some people "early retire" in this age group. But, only if you have enough cash. People with pensions are sometimes able to retire in this age group. Also, you can receive Social Security retirement benefits as early as age 62.

In this age group, the average 401K balance is $232,710 and the median is $70,620. Since you can receive Social Security retirement benefits as early as age 62, many people do choose to retire when they hit 65.

So, there you have it, the average and median 401K balance by age. The stats are from Vanguard's "How America Saves 2023" report, which offers data on the average and median 401K account balances by age. Find the full report here.