By Bryan Trugman, CFPⓇ
For some people, deciding where to retire is simple—they settle down in the state they’ve called home for most of their lives. However, many others look forward to spending their retirement years in a fresh location, perhaps to be nearer to family, enjoy a warmer climate, or support their health. Whatever the reason, understanding the financial implications of your chosen retirement location is essential for a fulfilling “golden years” experience.
If Long Island is where you plan to retire, here’s what you need to know about the cost of living to make the most of your retirement.
Cost of Living in Long Island
There’s no getting around it, Long Island’s cost of living is notoriously high compared to other parts of the United States. According to a recent survey by MERIC, New York ranks as the 6th most expensive state to live in—26% higher than the national average. But cost of living is more than just housing. To better understand what your overall expenses may be, it’s important to consider the following categories when calculating your retirement needs:
Housing Costs
The primary factor driving the high cost of living on Long Island is the high cost of housing, including both rent and home prices. The average monthly rent costs in Long Island are between $2,733 and $3,533, and the average mortgage interest rate is from 4-7% (yearly, for 20 years fixed).
Housing costs can vary greatly across the state of New York, however, so it’s important to consider where you live and if your retirement budget has room for your city’s cost of living. If not, it might be worth it to move to a less expensive area. And while Long Island is significantly more expensive than the national average, it is generally considered less expensive than living in New York City.
Healthcare Costs
Another important cost-of-living factor is healthcare. According to the Fidelity Retiree Health Care Cost Estimate, the average retired American individual aged 65 in 2024 may require approximately $165,000 of after-tax savings to cover their healthcare costs in retirement. This amount will vary widely based on individual needs, but healthcare costs in Long Island, New York, are notably higher than the national average, driven by the region’s overall cost of living and the demand for high-quality medical services.
According to recent data, Long Islanders can expect to pay significantly more for health insurance premiums, out-of-pocket expenses, and medical services compared to many other regions in the United States. The average annual premium for health insurance in Long Island often exceeds $7,000, and costs continue to rise due to factors such as increased administrative expenses and the high price of medical care.
In addition to insurance premiums, residents may also encounter elevated costs for routine medical services. For instance, the price of primary care visits, specialist consultations, and hospital stays can be substantially higher in Long Island than in other areas. These rising healthcare expenses can pose a challenge for retirees, who must carefully consider their budgets and health needs when planning for their golden years. As healthcare is a crucial aspect of retirement planning, understanding the financial implications of living in Long Island is essential for making informed decisions about long-term care and insurance coverage.
Taxes
Long Island is known for its relatively high tax rates, which can significantly impact residents’ financial planning. The state income tax in New York is progressive, ranging from 4% to 10.9% depending on income levels, and Long Island residents, particularly in Nassau and Suffolk counties, also face property tax rates that are among the highest in the nation. In 2023, the average effective property tax rate in Nassau County was approximately 1.79%, while Suffolk County’s was around 2.42%, both significantly above the national average.
Balancing Two Homes in Retirement
It’s worth considering where your children or parents have settled as you plan your retirement lifestyle. Many of my clients in their 60s choose to buy a second home in Florida, enjoying the perks of being a snowbird while maintaining a home on Long Island to stay close to their kids and grandkids. While this dual lifestyle offers the best of both worlds—warm winters and time with family—it’s important to account for the costs of maintaining two homes, including property expenses, travel costs, and multiple cars.
Living bicoastally or seasonally can be incredibly fulfilling, allowing you to enjoy sunny weather and everything New York has to offer. By planning ahead, you can create the retirement lifestyle you’ve always envisioned. It’s never too early to start preparing for your dream lifestyle, and where you live plays a big role in shaping your retirement experience.
Plan to Retire in Long Island
Long Island provides retirees with a vibrant, fulfilling community to call home. However, the region’s higher cost of living can present a challenge for pre-retirees who wish to maintain their lifestyle. While reaching the necessary savings targets may require additional planning, pursuing your retirement dreams here is within reach.
At Attitude Financial Advisors, we believe your financial success begins with a winning attitude. And partnering with a financial advisor who takes a holistic approach to retirement planning can make a meaningful difference. If you’re considering retirement in Long Island, get in touch to learn how we can design a solid plan. Reach out to me via email at btrugman@attitudefinancial.com or give me a call at (516) 762-7603 to set up a free consultation.
About Bryan
Bryan Trugman is managing partner, co-founder, and a CERTIFIED FINANCIAL PLANNER® practitioner at Attitude Financial Advisors. With more than 16 years of experience, Bryan specializes in addressing the financial needs of new parents as they seek to realign their finances, assisting divorced individuals as they navigate an unforeseen fork in the road, and strategizing with those seeking to accrue a dependable retirement nest egg. Bryan is known for being a good listener and building strong relationships with his clients so he can help them develop a customized financial plan based on what’s important to them. He is passionate about helping his clients experience financial confidence so they can worry less and play more. Bryan has a bachelor’s degree in industrial and systems engineering with a minor in mathematics from State University of New York at Binghamton. He has served on the board of the Financial Planning Association and continues to be actively involved in the national organization. He is also a member of the Plainview-Old Bethpage Chamber of Commerce and has served as its vice president and as a board member. When he’s not working, you can find Bryan on the ballroom dance floor or engaged in a fast-paced game of doubles on the tennis court. To learn more about Bryan, connect with him on LinkedIn. Or, watch his latest webinar on: How Much Is Enough? A Surprisingly Simple Way to Calculate Your Retirement Savings Needs.
