American retirees aren't all flocking to Florida anymore instead, they're heading to places like Colorado, Nevada, and Alaska.

Retirement planner Jeannette Bajalia says that healthcare costs and taxes are going to be on retirees' minds as they plan moves in 2020 and beyond. "Healthcare costs are escalating both for routine medical costs as well as for long-term care," Bajalia told Business Insider. In deciding where to live, she said, "People will be looking for ease of access to, and affordability of, medical care."

Another big factor for people retiring in the new decade will be taxes. "I think most people will be relocating to more tax-friendly states where their money can spread, and instead of paying taxes, they can stay active longer and fund their lifestyles more effectively," Bajalia said.

Below, find 13 states that will likely become hot destinations for retirees over the next decade. These states had the largest growth in senior populations between 2007 and 2017, according to the Administration on Aging's data, pulled from the American Community Survey, and include traditional sun belt favorites like South Carolina, Georgia, and Arizona, but also tax havens like New Hampshire and Washington. While the data doesn't distinguish between residents aging into the senior population and newcomers relocating to the state, a significantly larger senior population is bound to make the area more welcoming to those who might want to move.

On this list, five of the 13 states don't tax income. And, many other states on this list have little to no income tax. Plus, according to data from the Kaiser Family Foundation, many of these states have fairly affordable healthcare costs.

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13 places everyone will be flocking to for retirement in the 2020s - Business Insider

The fattest state in the country also sounds like a pretty great place to go out to pasture, if getting the biggest bang for your retirement buck is the priority.

According to BLS data cited by cost-estimating website HowMuch.net, Mississippi, at $617,661 in savings needed, is the most affordable state to spend your golden years. The average across the U.S. comes in at $904,452.

Of course, there are drawbacks to riding it out in Mississippi.

Along with the fattest crown, for instance, the Magnolia State also has the dubious distinction of the lowest life expectancy at 74.5 years. On the flip side, Hawaii, which is the most expensive place to retire, comes in at 81.5 years, the highest. The average life expectancy nationwide is 78.6 years.

HowMuch.net created this map to illustrate the findings:

As you can see, each state is colored a shade of pink the darker the shade, the higher the savings needed for retirement. Each state also has a purple circle with a size corresponding to the average retirement age in that state.

The average yearly expenses across the country for someone over the age of 65 is $51,624, but that figure comes in at $44,758 in the low-cost-of-living Mississippi and a whopping $99,170 on the other end of the spectrum in the Aloha State.

To account for a comfortable retirement, HowMuch.net added an extra 20% on those expenses, and then adjusted by each states cost of living index.

Regardless of where they live, most Americans are not saving enough in order to fund their retirement, HowMuch.nets Juan Carlos wrote.

Read: Americans are unprepared for retirement heres how to fix that

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Are you on track? This is how much it costs to retire comfortably in each state - MarketWatch

This is BETTER Business, a new personal finance segment hosted by Stephanie Ruhle. Each week, Stephanie breaks down the financial headlines and how they'll affect your wallet and shares compelling conversations with industry leaders, entrepreneurs and people who've cracked their own personal money codes.

Are you saving enough for retirement? If youre already in your 50s or 60s, you may be all set. But for millennials and Generation X this information is crucial, so listen up.

Standard advice is to save 15 percent of your paycheck, but new research from MIT suggests the figure is much much higher, as reported by CNBC Make It.

According to the research, if you want to retire by 65 and plan to live off just half of your salary when you stop working you'll need to save 40 percent of your income over the next 30 years.

Why so much? Well, investment returns aren't forecasted be as high as they have been historically.

Your parents may have been lucky to see an average of 10 percent returns for their 401k investments, but realistically you should expect to see 3 percent over the next ten years.

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So lets say saving half of your paycheck isnt possible it really isnt an option for a lot of people. What can you do? Adjust your future plans. Here are some things to consider:

Staying in your job longer means you can put off dipping into your retirement savings. Even working part-time after you retire will help cover monthly costs.

Benefits from social security are much greater if you wait until age 70 compared to the age of eligibility at 62. That difference could help you make ends meet.

Have you been prioritizing the gym or eating better? How about that yearly physical? Now's the time. One of the biggest costs in retirement is health care costs. Take care of yourself while youre young, fit and healthy, its an investment in a different sense.

If you're currently in an area with a high-cost of living, your savings will go a lot further if you can move somewhere cheaper. Whether that's downsizing your home or moving to a state with a lower cost of living, it's worthwhile to do the math and keep your options open.

Its important to start thinking about this stuff now so you can plan ahead and secure a better life in the future.

See the whole BETTER Business show for this week:

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Worried about retirement funds? These three things can help close the gap - NBC News

How much money will you need to retire?

According to a recent analysis by GoBankingRates.com, it takes more than $1 million to have a comfortable retirement in any state in America. That figure grows to more than $2 million if youre planning to retire in Hawaii or the District of Columbia.

The average age most people retire varies from state to state as well. The GoBankingRates.com analysis showed the average retirement age in every single state is below 67, though the District of Columbia comes in higher. On average, people in the U.S. retire at age 64.

The average retirement age in Alabama is a few years younger - 62. Thats one of the lowest average ages in the country.

The lowest average retirement age was 61 in West Virginia and Alaska.

At 67, the highest average retirement age was in the District of Columbia, followed by Hawaii (66); Massachusetts (66); and South Dakota (66).

The study showed the annual cost of a comfortable retirement in Alabama was $55,425, one of the lower figures in the country (you can compare that to $100,879 per year in Washington, D.C.)

You can see how every state ranks here.

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This is the average retirement age in Alabama - AL.com

Saving for retirement is complicated, but here's a simplistic breakdown of how much you should have in your 401(k) at each decade in your life.

Social Security benefits will provide a source of income during retirement years, but in most cases, it will not be enough to offset all the necessary retirement expenses of an individual. This is why the structure and performance of your own retirement savings plan areso critically important.

There are four key elements to achieving a successful retirement savings plan.

Even investing a small amount at an early age can be beneficial given the wonders of compounded investment returns.

One potential pitfall is that you are overly conservative when investing your retirement funds. To illustrate, traditional bank savings accounts today offer an interest rate of less than 1 percent. Such a low yield will make it difficult to accumulate adequate retirement savings down the road.

Conversely, investing too aggressively may be disastrous given the extreme volatility of the potential returns. Perhaps a more prudent approach is to invest your retirement funds in a diverse stock index fund where historically, the annual rate of return could exceed 6 percent over a long period of time.

Understand, however, that the stock market will likely experience periods of significant volatility during the life of the portfolio. Therefore, as one is nearing retirement, they should work with their financial planner to optimize their plan, perhaps investing more conservatively to protect the retirement savings from future, additional downward market fluctuations.

One option is to open a traditional Individual Retirement Account (IRA) which currently allows you to save $6,000 a year, or $7,000 if you are 50 or older. The contributions to an IRA may be tax-deductible, depending on your level of income.

MASSMUTUALS KEIA COLE: HOW TO KEEP MONEY PROBLEMS FROM RUINING YOUR HAPPY MARRIAGE

Another option is if your employer allows you to put pretax dollars into a 401(k) account. The maximum contribution to a 401(k) plan in 2019 is $19,000 or $25,000 if you are 50 or older. The beauty of these retirement accounts is that income taxes are not paid until withdrawals are made. As a result, the earnings accumulate tax-free.

An employer might match as much as 50 percent of your annual contribution, so if your contribution is $10,000, they will add $5,000, tax-free.

Let's start with the worst-case scenario and see what we can learn from it.

Let's assume a person wants to retire at age 67, but only starts saving for retirement at age 47. To worsen matters, this person contributes $10,000 into a traditional bank savings account earning 1 percent interest.

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At age 67, there will only be $226,996 in this person's savings account. This could be problematic because the average life expectancies for a 67-year-old male and female in the United States are 16.49 and 18.89 years, respectively. Yet this account will only last 1.51 years if this person's annual retirement expenses are $150,000.

There are three problems in this scenario: 1) this person started too late; 2) the annual rate of return is only 1 percent, and 3) it was put into the savings account using after-tax dollars.

Now let's modify the scenario and see what occurs when this same person starts saving for retirement at age 30. Furthermore, assume this person annually contributes $10,000 into a 401(k) plan that invests in a stock index fund that will generate an average annual rate of return of 6 percent.

Now at age 67, there will be $1,435,403 in the 401(k) account. This time, the savings will last 14.3 years, if the annual retirement expenses are $150,000.

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Let's continue to modify the scenario, assuming the employer will match 50 percent of the contribution. So instead of this person just contributing $10,000 to their 401(k) plan, the total annual contribution will be $15,000, given the employer match of $5,000.

Now at age 67, there would be $2,153,104 in the 401(k) account. This would be enough to cover 33 years of retirement expenses, assuming annual retirement expenses of $150,000.

INSIGHT INVESTMENTS GAUTAM KHANNA: LOW-INTEREST RATES CAN HURT YOU HERE IS WHAT YOU NEED TO KNOW

In the end, it is critical to first take time to determine how much you believe you will need to live comfortably through your retirement years.

You should then strive to create a successful retirement plan by making contributions to a tax-deferred retirement account, if possible, investing as early as possible, trying to generate a reasonable rate of return and if available, taking advantage of plans that allow for employer-matching contributions.

Raymond C. Radigan is head of private trust at TD Wealth. Ray is responsible for managing the trust activity across the TD Bank footprint from Maine to Florida. He oversees the Trust Advisors who bring TD Wealth's full range of investment options to U.S clients to support the management and distribution of their assets. He also oversees the Wealth Strategists, who provide guidance to our clients as they formulate their financial and estate plans.

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Ray Radigan: Retirement strategies that work -- doing these things now could make a $1M-plus difference then - Fox Business

Not contributing to a 401(k) was voted as the worst financial mistake made by Americans.

If you cant remember making a financial mistake then it might be time to get your memory checked. While no one is immune to making inopportune financial decisions, some missteps are a lot more costly than others.

Some mistakes are nearly unavoidable. Think about the Americans who purchased homes at the height of the real estate market boom that preceded the Great Recession. Few people anticipated the financial markets to collapse the way they did in 2008.

However, the mistake most Americans are afraid of making is usually self-inflicted and easily avoidable.

According to a survey by TD Ameritrade, Americans believe that not investing in a 401(k) is the worst financial mistake you can make. Not having an emergency fund was voted number two, while not contributing enough to a 401(k) to get the company match came in at number three.

If one thing is clear, its the importance of the 401(k) in modern retirement planning. Heres what you can do to make sure you take full advantage of your employer-sponsored retirement plan.

But first, lets review what a 401(k) and why its so important.

Lets get started.

Earlier this month, GE announced that it was freezing the pensions of 20,000 employees. As if we needed it, its the latest sign that pension plans are heading toward extinction. Once seen as the Holy Grail of saving for retirement, the pension has been virtually replaced by 401(k) plans.

A 401(k) is an employer-sponsored tax-favored retirement account that you contribute pre-tax wages into. At its most basic level, a 401k is simply an account that you use to save and invest for retirement.

Unlike pensions, you, as the worker, are the steward of your 401(k) investments and contributions. This means that if you dont opt-into a 401(k) plan, you wont be making regular retirement contributions via payroll deductions. In a pension plan, the employees dont participate in the management of those funds.

For many, seeing payroll deductions for social security provides a false sense of relief. In truth, if you are relying on social security to bail you out, youll likely be left wanting more.

The average social security benefit for retired workers in January 2019 was $1,461. For an aged couple both receiving benefits, the figure jumps to $2,448. On an annual basis, thats $17,532 for an individual and $29,376 for a couple.

When you consider that the average household spends $660.25 per month on food alone, it goes without saying that relying solely on social security during retirement will strain most American budgets. Add in the fact that healthcare expenses in retirement are significant, and this leaves very little money, if any, leftover. Definitely not enough for the retirement most people envision, which includes ample travel.

When it comes to your retirement, its important to get a sense for how much you should aim to save on a monthly basis. Use this retirement calculator to get an estimate for your monthly savings goal.

The best thing you can do for your 401(k) is to invest as much as you can. For 2019, employees can contribute up to $19,000. Employees at least 50 years old are eligible for a catch-up contribution of $6,000. Employers can also contribute to employee 401(k) accounts, but there's a $56,000 limit on combined employer and employee contributions. The number jumps to $62,000 if the employee is eligible for a catch-up contribution.

If you arent able to contribute enough to max out your 401(k), always aim to at least contribute enough to get the full company match. Not getting the company match is a big blunder youll want to avoid at all costs.

Once youve elected your contribution amounts, its time to think about your investments. The worlds best money managers recommend investing in a diverse basket of stocks and bonds. Index funds or target date funds are the easiest way to do this, while also keeping fees at a minimum. However, not all index funds are created equal. Last year, Fidelity launched a new index fund with zero fees. The response from Vanguard and other brokerages has been to lower their fees as well. This means there are more low cost investment options than ever.

One hiccup is that your 401(k) plan may not have those low cost funds available. While you are employed at the company and are required to select from pre-selected options, pay close attention to the fees, typically expressed as expense ratios, that different funds charge. Higher fees typically means less money in your pocket. If you switch jobs or leave your employer, make sure you roll your 401(k) into an IRA so that you have complete control over your investment options.

If you want to supercharge your retirement savings, contribute to an IRA or Roth IRA in addition to your 401(k). In total, aim to save and invest 15% of your lifetime earnings in order to have a that retirement youve always wanted.

You owe it to yourself.

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This Is The Biggest Retirement Mistake Americans Are Afraid Of - Forbes

A picture taken on September 17, 2019, shows the logo of U.S. giant General Electric in Belfort, ... [+] France. (Photo by SEBASTIEN BOZON / AFP)

Are pension plan participants being shortchanged when their former employers offer them lump sum buyouts?

The short answer is, It depends.

And this is actually a reversal for me, as Id previously defended companies against those who say theyre cheating their employees.

It turns out to be a bit murkier.

But lets backtrack:

Is your former employer offering to buy out your pension accruals with a lump sum, or offering you the opportunity to start your pension earlier than usual? The lump sum offer has become a preferred method for companies to reduce their pension liabilities, and financial experts have warned repeatedly that this can be a poor decision for participants because the value of a pension goes beyond the dollar amount of the payments made over time. Thats because the actuarially fair calculation the company is required to perform is not the same as what it costs to buy an annuity that protects you against outliving your assets.

At the same time, Ive written in the past that these programs do not cheat employees because employers are required to base their math on actuarially fair assumptions, but employees nonetheless should evaluate their particular situation; in most cases theyre better off keeping the lifetime benefit but there may be some situations (ill health, solid lifetime benefits from another source) in which the lump sum is the right choice. For especially young employees, a rollover to an IRA of money they might otherwise forget about or struggle to find out how to claim at retirement age can be a particular help.

And now Im hearing reports of a new offer employers are making to their former employees: the option to begin their retirement benefits well in advance of the usual benefit commencement date. Why might companies do this? There are some reasons why this would help them with risk management: This can be a first step toward settling liabilities by purchasing annuities with insurance companies, and this will reduce their risk profile by moving more benefits into payout status. And, again, in principle, this is all done on the up-and-up and with actuarially fair calculations.

But theres a loophole. Some companies may be deceiving their employees, or, more neutrally stated, causing them to unknowingly opt out of valuable retirement benefits.

I was passed on a letter sent to a former General Electric employee who was eligible to begin a vested benefit at retirement age, to see how the GE pension buyout looks for an individual participant. The form offered not just a lump sum but, in fact, two new options to eligible employees: in addition to retirement benefits payable at age 60 or 65, participants may elect a lump sum payable immediately or an early pension option in which benefits would also start immediately. In this case, the individual was 53 years old and the monthly benefit offered for starting right away was only 45% of the monthly benefit at age 60. How, my correspondent asked, could the reductions for seven years be so dramatically lower?

The answer was in the fine print:

GE offers a pension with a normal retirement date of 65, and the lump sum value and the early pension option monthly benefit were both based on the actuarial equivalents to the monthly age-65 benefit.

But the plan also contains a provision for what they label an early retirement subsidy in the form of the ability to begin benefits as early as age 60 without any reduction. And the value of this subsidy is not reflected in the lump sum or early pension option calculations. It can only be obtained by waiting until age 60 to begin receiving benefits, and choosing an annuity rather than a lump sum.

Whats more, this benefit is substantial. In this particular employees case, opting for a lump sum early rather than beginning benefits at age 60 would reduce his benefit by about 30%!because the reduction was from 65, rather than 60, to 53.

Now, GE, in its defense, would say that its materials are perfectly clear on this point. They say, in bold print and with underlining, that

This [early retirement] subsidy is not included in the amount in [the lump sum choice] or [the early pension choice], which is based only on your benefit at age 65. If you start your pension before 65 under [the standard retirement provisions], those monthly payments are expected to be worth more than a lump sum or an immediate annuity under [the alternate choices] (assuming average life expectancy).

Is this clear enough for them to have met their ethical duty to treat plan participants fairly? Should they have made it clearer exactly how much money participants who chose the extra-early monthly payment or lump sum option are leaving on the table?

To be clear, GE is not in violation of any law, and participants are not losing any part of their protected age-65 benefit. But those who elect the lump sum do so without knowing (absent additional research on their part) how much additional benefit value they are forgoing.

And GE isnt the only company.

UPS is engaged in another wave of what it calls a Special Pension Payment Offer, in which former participants with vested benefits are able to take lump sum benefits; as with GE, they are not merely offering the lump sums that make the news but also the opportunity to begin retirement benefits early.

How early? An anonymous employee at a UPS employee discussion board posted the offer he received. UPS is offering him the option to elect an early retirement benefit 20 1/2 years early, that is, at the age of 44 1/2. Not surprisingly, his benefit is reduced by a factor of 0.27that is, 73% less than if he had waited until his normal retirement age, and, judging by the conversation on that board, no one is seriously considering taking that level of monthly benefit, and advice is split on whether to roll over the money into an IRA or live for today (which one presumes were largely in jest).

At UPS, there is no general availability of early retirement subsidies, but certain former employees, depending on employee group, are able to retire early after 30 years of service without any reduction in benefits, or receive other forms of early retirement subsidy, according to an SEC filing. I sought clarification from the company as to whether the value of these benefits are reflected in the offers eligible former employees are receiving, or whether, as with the GE former employees, they, too, are forgoing valuable benefits without knowing it; the response I received was a carefully worded nonanswer to the question.

A former employee also shared with me the decision guide being provided to employees. The company does state that

You will be responsible for investing your distribution, which may increase or decrease your income over your lifetime and

If you live beyond your life expectancy assumed in the lump sum calculation, you could end up with less money than if you received a monthly benefit. Alternatively, if you die earlier than assumed in the lump sum calculation, you may receive more under the lump sum option.

Is this sufficiently meaningful information to enable a participant to make an informed choiceespecially when one of those choices is a monthly benefit, but begun at what may be, depending on the participant, a ridiculously early age?

And how many other companies are engaged in the same approach, enabling former employees to unknowingly opt out of early retirement subsidies, and offering early retirement benefits at an age well below what makes any sense for a workers financial well-being?

Again, companies are following the law. But are they acting ethically?

Comments? Experiences to share? Visit JaneTheActuary.com!

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The Hidden Way Employers May Be Shortchanging Employees In Their Pension Lump Sum/Early Retirement Offers - Forbes

Nancy Tengler, Special to USA TODAY Published 7:08 a.m. ET Nov. 2, 2019

USA TODAY personal finance reporter, Janna Herron, explains how changes in the Federal Reserve's interest rates affect your financial accounts. USA TODAY

If you check your 401(k) statement anytime soonyou should feel much better than you did a year ago. Your investments are doing well.

But why?Bad news and uncertainty are everywhere: Trade wars, impeachment, flat corporate earnings and a looming presidential election. Add to that muddy mix a slowdown in global growth and central banks worldwide cutting interest rates to shore up sluggish economies.

Our Federal Reserve is also cutting. Since July, the central bank has trimmed rates three times, bringing the federal funds rate down to a range of 1.5%-1.75%. And that's been good for stocks and bonds. The Standard & Poor's 500 stock index is up over 20% this year and the Bloomberg Barclays US Aggregate Bond Index is up 8.3% year-to-date.

In short, interest rates matter to both bond and stock performance.Look at history. Back in1995, the Fed also cut rates three times. What was the result?Those cuts reignited the economy and generated a cumulative total return for the S&P 500 of 251% over the subsequent five-yearperiod.

Along with Wednesday's announcement of cut to the fed funds rate, Fed Chair Jerome Powell also committed to injecting cash into the central bank's repurchase (repo) facility. That's not a long-term solution, however.(Photo: Wikimedia Commons)

With that encouraging precedent in mind, now's a good time to look over your 401(k) and consider these tips for your stock and bond holdings.

Because 401(k) balances are tax-exempt, you have the luxury of adjusting your investments without worrying about taxes.If a particular fund or asset class has grown to an outsized percentage of your holdings, sell those holdings and reinvest the money elsewhere.By not trimming, you run the risk of riding an investment up and back down. Cashing in on your gains, even if you do it early, is prudent and results in a portfolio that reflects your desired allocation and risk tolerance.

By the time most investors have enough information to make a change to their portfolio, the market has already reacted and it is too late.The fund manager in your chosen 401(k) investment should be analyzing and anticipating and generating excess return for you.If he or she is not (over a reasonable period) pick another fund. Your job is to keep your allocation in line with your risk tolerance.

Whatever you do, dont try to time the market. While tempting, it almost always costs investors total return and generates significant underperformance.Manage your asset allocation to your objectives and remember thatthe beauty of a 401(k) is you are dollar-cost averaging by taking money from your paycheck every two weeks and putting it to work in markets.If you are unwilling to manage your allocations and would rather invest in a target-date fund, that is up to you.But you are surrendering the most important control how much am I comfortable owning in stocks and how much in bonds?

The more engaged you are inmanagingyour money, the better shape you will be in when you finally retire.In the meantime, you can thank the Fed, instead of your lucky stars.So far this year is a doozy.

Nancy Tengler is chief investment strategist at Tengler Wealth Management, ButcherJoseph Asset Management and the author of The Womens Guide to Successful Investing.

If you're an empty nester, make sure you've done these 3 tasks to turbocharge your 401(k). USA TODAY

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The Fed just cut rates again. Here's what you should do next with your 401(k) - USA TODAY

Dear Catey,

I am 43 years old and plan to retire at 62. As a member of Gen X, I already know that Social Security will most likely not be around for me. I plan to retire on $1.2 million in retirement savings. Ive already decided it wont be in the U.S. Where can I live to stretch my retirement dollars? It must have a low cost of living, low health-care costs, low crime and be near a beach. Thank you for your help.

N.W.

Dear N.W.,

Im getting more interest from readers these days about retiring abroad mostly because they feel they can get more bang for their buck outside of the U.S. They often can, but going abroad can have big downsides, sometimes including higher crime, being far from your family and not-so-great health care.

That said, your $1.2 million future nest egg could stretch a lot further in many spots abroad than it would in the U.S. Plus, though you doubt Social Security will be around for you, many experts say that you can, in fact, count on it even if benefits are curtailed somewhat. As MarketWatchs Alessandra Malito recently reported: Many Americans believe Social Security wont exist when they retire theyre wrong. Social Security does face serious challenges, and the payout may decline but the program itself is not going anywhere.

Here are some places that meet most of your criteria, with one caveat: While this is all true today, a lot could change over the next 19 years. Still, I love that youre planning so far ahead. Bravo!

Coronado, Panama

Panama is known as a safe country and ranks in the top 100 (82nd, to be exact) in the world for health-care quality and access, with residents saying Panamanian health care is generally affordable. And Coronado in particular its around 40 miles west of Panama City on the Pacific Ocean is considered a very safe community with a top-notch medical facility, says Suzan Haskins, a senior editor at International Living.

Once a resort town for affluent Panamanians, in recent decades Coronado whose beaches feature black-and-white speckled sand has become popular with expats, who enjoy the golf, shopping and restaurants in the area.

Its also pretty affordable: If you dont live right by the beach, you can get by on under $2,000 a month, with the added bonus of a pensionado visa program that offers a ton of discounts for seniors. One downside is that, because Coronado is a resort town, it can feel hectic at times because of tourism.

George Town, Malaysia

Malaysia snagged the top spot in International Livings rankings of international health care and landed on Investopedias list of the top 10 cheapest and safest countries to retire in. Whats more, George Town itself scored a spot on U.S. News list of the best places to retire in Asia, with that publication noting that it is one of Southeast Asias most livable destinations with low costs, excellent health care and expat perks like the fact that foreigners are welcome and English is widely spoken.

As for those beaches youre dreaming of, U.S. News points out that almost on the citys doorstep are stylish seaside settlements with palm-fringed sandy beaches and a backdrop of lush rainforest. Youll also enjoy great food, interesting architecture (one section of the city is a Unesco World Heritage site) and a fun arts scene. However, itll be a long flight youll often spend more than a day traveling to come back and visit stateside friends and family.

Mrida, Mexico

Affordable and culturally rich, Mrida which I recently recommended to a woman who was hoping to retire near the beach in Mexico on under $1,200 a month seems to meet most of your requirements, too.

Though its not right on the beach, its just 25 miles from the famed sugar-sand beaches of the Yucatns Gulf Coast (its hard to beat those beaches in terms of natural beauty) and Mrida, which has a population of upward of 800,000, has the added benefit of offering great food, plenty of events to entertain you and a thriving expat community. Dan Prescher, the senior editor at International Living, points out that health care here costs a fraction of what youd pay in the U.S. and many of the doctors went to medical school in America and speak English.

Though it might not be the safest place on this list (the U.S. Department of State puts the Yucatn Peninsula as a whole at a Level 2, which connotes the suggestion that Americans traveling there exercise increased caution), Mrida itself is known as one of the safest cities in Mexico, and people generally say they feel safe living here. For my money, Mrida, the capital of Yucatn State in Mexico, has it all when it comes to affordability, low crime, and access to great health care, Prescher says.

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Ill retire at 62 with $1.2 million and want to live in an affordable, safe place near the beach where should I look? - MarketWatch

Retirement is one of the few goals shared by nearly everyone. While most get there in the end, many find that this new era of supposed freedom comes with increasing financial constraints. Hopefully, you can afford to cover at least your basic living expenses in retirement, but thousands of Americans fall short of this goal, either because they cannot save as much as they should or because they underestimate the true costs of their retirement.

Median retirement savings for American workers sit at around $50,000, according to a recent Transamerica study. The Bureau of Labor Statistics reports that the average household headed by an adult 65 or older will spend this in nearly one year. If we assume this average spending with adjustments for inflation over a 30-year retirement, it's not unreasonable to think retirement could cost $1.5 million to $2 million or more. This can seem an impossible goal for those sitting with $50,000 or less in their retirement accounts right now, but with a few of the strategies below, it just might be possible.

Image source: Getty Images.

No matter how much money you have saved for retirement, your first step is the same as anyone else's: Create a detailed retirement plan. Start by estimating the length of your retirement by subtracting your preferred retirement age from your estimated life expectancy. One in three 65-year-olds today can expect to live past 90 and one in seven will live past 95, according to the Social Security Administration so, to be safe, plan for a long life.

Total up your average estimated costs in retirement. Start with basic expenses first, like food, housing, and healthcare. Then, you can allot some extra money for travel and entertainment if you choose. Multiply your estimated annual retirement expenses by the number of years of your retirement, adding 3% annually for inflation. This is your total estimated retirement cost, but you don't have to save this all on your own.

Unless you're stashing all your retirement savings in a savings account (which I would advise against), your money's probably going to grow over time. Depending on how you invest your money, it's possible to see a 7% to 8% annual rate of return over time. But you should use a 5% to 6% rate of return when calculating your investment growth, so your plans aren't derailed if your money doesn't grow as quickly as you'd expected. A retirement calculator will do this math for you and it can also factor in inflation for you, too. The final step is to subtract any free money you expect for retirement (more on that below) to figure out how much you must save on your own.

Social Security will be there for you when you retire, whether that's this year or in a few decades, and it can give you hundreds of thousands of dollars over the course of your retirement. This can go a long way toward reducing the retirement burden on you, but you need to understand the role you play in the size of your checks so you don't accidentally cost yourself benefits.

Your checks are based on your average monthly earnings during your 35 highest-earning years with adjustments for inflation. If you haven't worked for at least 35 years, you'll have to factor in some zeroes, which will weigh down your average, and if you've worked less than 10 years, you won't be eligible for Social Security at all.

The age you begin taking benefits also affects the size of your checks. If you want your full benefit, you must wait until your full retirement age (FRA) -- currently 66 or 67, depending on your birth year. You can begin as early as 62, but then you'll only get 70% of your scheduled benefit per check if your FRA is 67 or 75% if your FRA is 66. Delaying benefits past your FRA will increase benefits until you hit the maximum at 70. This is 124% of your scheduled benefit per check for an FRA of 67 or 132% for an FRA of 66.

Your employer might also offer free money toward your retirement in the form of a pension or 401(k) match. Always take advantage of any 401(k) match available to you unless you need all your income for basic living expenses. Try some of the tips below to lower your expenditures if this is the case. Watch out for your company's vesting schedule, too. This indicates when employer-matched funds are yours to keep and leaving before you're fully vested could cost you some or all of your 401(k) match.

Lowering your expenses today can free up more money to put toward your retirement savings. There are many approaches to doing this, including canceling services you no longer use, limiting discretionary spending, downsizing your home, or paying off debt. Take every penny you're saving and put it toward your retirement.

If you continue these money-saving strategies into retirement, you might also end up reducing the cost of your retirement. Cutting back on travel in retirement or delaying retirement by a few months or years can also help you narrow the gap between what you have and what you need. Delaying retirement is especially effective because it gives you more time to save while reducing the number of years your savings has to last.

In addition to lowering your expenses, look for ways to increase the money you have coming in. This might mean starting a side business or pursuing promotions at your existing job. This will help you by boosting the cash you have available for retirement as well as your average monthly earnings used to calculate your Social Security benefits.

Stay mindful of the retirement contribution limits every year. You may not need to max them out, though you can if you'd like. But avoid overcontributing because you'll incur a 6% penalty on the excess for every year it remains in your account.

You're allowed to contribute up to $6,000 to an IRA in 2019 and $19,000 to a 401(k). Adults 50 and older are allowed an additional $1,000 and $6,000, respectively, in catch-up contributions. These limits change periodically, so you may be able to contribute more in the coming years than you can today.

If you stick with the above strategies, you will definitely notice an increase in your retirement savings over time. Whether that's enough to cover your dream retirement depends on when you started, the lifestyle you want, and how much time you have until you exit the workforce. But a comfortable retirement where you don't have to worry about being able to afford basic living expenses could well be within reach.

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Median Retirement Savings Are Worryingly Low: Here's What You Can Do About It - The Motley Fool