This article looks at the best places to retire in New Jersey. If you wish to skip our detailed analysis of retirement savings, relocation, and pros and cons of retiring in New Jersey, you may go directly to 5 Best Places to Retire in New Jersey.
Retirement Savings
As people draw the curtains on their professional careers and look to begin the final act of their lives, they are confronted with the inevitable question, Do I have enough money to retire comfortably? The answer depends on a variety of factors that include, but aren’t limited to, post-retirement income, desired standard of living, taxation, and housing expenses. However, as a rule of thumb, Charles Schwab Corporation (NYSE: SCHW) recommends having savings of 25 times the withdrawal of your first year of retirement. As per Charles Schwab Corporation (NYSE: SCHW), a reasonable estimate for this withdrawal would be 75-80% of the annual pre-retirement income.
Unfortunately, accumulating such a vast nest egg is no mean feat. According to Charles Schwab Corporation (NYSE: SCHW), even if you start saving for retirement in your 20s, it would require savings between 10-15% of every paycheck for the remainder of your career to accumulate enough funds for a comfortable retirement. If you find this thought challenging, you aren’t alone. Based on Northwestern Mutual’s 2024 Planning and Progress Study, among generations closest to retirement, just half of Boomers+ (49%) and Gen X (48%) believe they will be financially prepared when the time comes.
The same study by Northwestern Mutual revealed that the average amount US adults have saved for retirement is just $88,400. This is just $900 higher than the average amount saved for retirement in 2020, which stood at $87,500. In the same period, the amount of money people believe they need to retire comfortably has soared. According to Northwestern Mutual, in 2020 the average US adult used to believe that $951,000 was enough to retire comfortably. However, in 2024, people’s magic number for a comfortable retirement has increased to $1.46 million.
Retirement Relocation
Owing to such a huge gap, it’s reasonable to see why so many retirees choose to relocate for their retirement. According to a report by Hire a Helper, more than 338,000 Americans moved to retire in 2023, an increase of 44% compared to 2022. Our article on best places to retire in the South reveals that many retirees are choosing to move away from the Snow Belt to the Sun Belt. The article reveals that while the warm and welcoming weather of Southern states is an important factor in this migration, cost of living, affordability, and lower taxes also tend to attract retirees to the Sun Belt.
This observation is visible in data shared by U-Haul Holding Company (NYSE: UHAL) in their list of Top Growth States in 2023 which shows that the most popular destinations of one-way U-Haul Holding Company (NYSE: UHAL) customers were Florida, Texas, and the Carolinas. In comparison, New Jersey, Massachusetts, and Michigan were 3 of the bottom 5 states in U-Haul Holding Company’s (NYSE: UHAL) list of Top Growth States in 2023.
Similarly, based on the 47th Annual National Movers Study by United Van Lines, New Jersey was ranked as the number one moved-from state in the US. According to the study, 65% of state-to-state moves handled by United Van Lines in New Jersey were outbound. Moreover, the top reason for relocating was retirement.
Pros and Cons of Retiring in New Jersey
There are several reasons New Jersey is an unpopular retirement destination. Firstly, the average cost of living in New Jersey is 19.8% higher than the US average. Moreover, Redfin Corporation (NASDAQ: RDFN) reports that the median home price in New Jersey in February 2024 was $477,500. This is nearly 15% higher than the national median home price of $411,877, as reported by Redfin Corporation (NASDAQ: RDFN).
In addition to high costs, taxes are another concern when retiring in New Jersey. Although social security is exempt from taxation, and other forms of retirement income may be eligible for deductions (depending on income levels), New Jersey has one of the highest property taxes in country. For these reasons, New Jersey recently featured in our list of worst states to retire in 2024.
However, if you’re in the position to spend some extra bucks towards your retirement, there are plenty of reasons to consider New Jersey a good retirement state. Its coastline boasts a treasure trove of beautiful beaches, there are plenty of forests and parks dispersed throughout the state, and it is home to some of the most popular boardwalks on the East Coast. Furthermore, the state is equipped with an extensive public transport system which, apart from day-to-day travel, also allows residents to entertain themselves with the sights and sounds of New York and Philadelphia.
In addition, like any other state, there are plenty of spots where you can retire in New Jersey on a budget, whilst also finding the right balance of comfort and entertainment. Join us as we look at the best places to retire in New Jersey.
Alternatively, if you’re interested in the best places to retire on the East Coast, check out 16 East Coast Cities to Retire on $3000 a Month or Less. Moreover, if you wish to learn about the best places to retire in Pennsylvania on a budget, you may check out our list of 15 Best Places in Pennsylvania for a Couple to Live on Only Social Security.
Methodology
To develop our list of best places to retire in New Jersey, we initially picked out the most recommended places to retire in New Jersey on the internet. We used 10+ sources including Our list of 15 Cities in the Northeast to Retire on $3000 a Month, Forbes, and Movoto to develop a shortlist. Further research was narrowed down to these places only. Among these best places to retire in New Jersey, we developed a scorecard using metrics such as livability scores, cost of living, median rent, and median home prices. Livability scores were sourced from Area Vibes while median rent and median home prices were obtained from Zillow Group, Inc. (NASDAQ: Z) and Redfin Corporation (NASDAQ: RDFN) respectively. By standardizing these metrics on a linear scale, each place was scored, based on which we sorted our list in a descending order. The top 15 places were chosen as the best places to retire in New Jersey.
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Let’s check out all the best places to retire in New Jersey:
15. Newton
Insider Monkey Score: 17.94
Livability Score:74
Median Home Price: $335,000
Median Rent: $1,700
IM Cost of Living: 108.5
The town of Newton is nestled in the Kittatinny Valley in Northwestern New Jersey. In terms of median rent, home price, and average cost of living, it is more affordable than most of New Jersey. The town is right next to the Kittatinny Valley State Park which features four lakes and several trails where residents can enjoy excursions such as paddle boarding, fishing, and horseback riding. That said, one drawback is that winter months in Newton witness frequent snowstorms.
14. Red Bank
Insider Monkey Score: 17.97
Livability Score:83
Median Home Price: $584,500
Median Rent: $3,000
IM Cost of Living: 133.1
Just an hour’s drive from the Big Apple, Red Bank is one of the best places to retire in New Jersey. Although the town is expensive in terms of both cost of living and housing, it provides access to several waterfront parks and the Bellhaven Nature Area. Red Bank has a vibrant arts & culture scene, with Two River and Count Basie being the town’s most revered theaters. All in all, there are plenty of excursions to revel in, whilst still enjoying the amenities of a suburban lifestyle.
13. Ridgewood
Insider Monkey Score: 18.29
Livability Score:88
Median Home Price: $795,000
Median Rent: $3,295
IM Cost of Living: 143.5
In terms of housing, Ridgewood is by far the most expensive place on our list. However, it also happens to have one of the highest livability scores. The town offers a suburban lifestyle, perfect for a peaceful, yet active, retirement. While recreational opportunities may be limited in comparison to major cities, there are numerous parks and cultural excursions for retirees to cherish.
12. Fort Lee
Insider Monkey Score: 18.31
Livability Score:88
Median Home Price: $684,500
Median Rent: $3,000
IM Cost of Living: 145.5
Located across the Hudson River from Manhattan, Fort Lee acts as a gateway from New Jersey to New York, and is one of the best places to retire in New Jersey. Although it has the highest cost of living on our list, its historical charm and access to incredible entertainment ensures your golden years are packed with excitement. Fort Lee Historic Park and Constitution Park are both locations that offer a chance for residents to soak in both the nature and history of this region.
11. Gloucester City
Insider Monkey Score: 18.53
Livability Score:72
Median Home Price: $206,750
Median Rent: $1,600
IM Cost of Living: 96.1
Just across the Delaware River from Philadelphia, the city of Gloucester is a quiet and peaceful retirement destination. Although residents can easily visit Philadelphia to get their dose of entertainment, there are plenty of excursions within Gloucester itself, in the form of its various parks and wineries. Moreover, in terms of median home prices, it is the most affordable destination on our list, making it one of the best places to retire in New Jersey on a budget.
10. Westfield
Insider Monkey Score: 18.61
Livability Score:87
Median Home Price: $1,190,000
Median Rent: $2,800
IM Cost of Living: 133.3
In stark contrast with Gloucester, the city of Westfield has the most expensive median home price out of all the destinations on our list. However, for those who can afford its extravagance, the city offers the opportunity to enjoy a sumptuous lifestyle. From global retail brands to world-class eateries, the city features a vast array of recreational facilities. It is also home to majestic parks such as the Mindowaskin Park and the Tamaques Park, offering the chance to engage in sports, adventure, and sightseeing.
9. Woodbridge
Insider Monkey Score: 19.03
Livability Score:83
Median Home Price: $325,000
Median Rent: $2,465
IM Cost of Living: 124.9
If you’re looking for an affordable suburban town which also offers the amenities and comforts of high-end destinations, Woodbridge might be one of the best places to retire in New Jersey. Its median home price is significantly lower than the state median, and although the cost of living is higher than the state average, it is worth it once you experience its excursions. The SeaQuest offers an extremely interactive manner of engaging with wildlife, while Fords Park and the William Warren Park are excellent if you wish to explore the great outdoors.
8. Metuchen
Insider Monkey Score: 19.05
Livability Score:84
Median Home Price: $725,000
Median Rent: $2,700
IM Cost of Living: 122.9
Metuchen is a suburban borough which is often referred as the Brainy Borough, courtesy of the many artists and literary figures who sprung forth from this town. It is the ideal place for an intellectually stimulating retirement, as retirees can immerse themselves in plenty of events throughout the year such as the Metuchen Street Fair & Crafts Show and the Metuchen Memorial Day Parade.
7. Toms River
Insider Monkey Score: 19.15
Livability Score:81
Median Home Price: $464,502
Median Rent: $3,200
IM Cost of Living: 112.5
Toms River is located on the Jersey Shore and in terms of weather it is one of the best places to retire in New Jersey. If your heart is set on living on the coast, Toms River is one of the best New Jersey shore towns to retire in. As soon as the summer season starts, residents can spend their days bathing in the sun at one of the city’s many beautiful beaches or visit its boardwalks. Apart from the sights, it also houses the Community Medical Center, meaning that retirees can have access to top quality healthcare.
6. Bridgeton
Insider Monkey Score: 19.41 Livability Score:74 Median Home Price: $210,000 Median Rent: $1,050 IM Cost of Living: 94.3 In terms of housing and living expenses, Bridgeton is perhaps the most affordable destination among the best places to retire in New Jersey. Although the city lacks access to modern entertainment and recreation in comparison to other destinations in New Jersey, there is plenty of natural beauty to absorb. The Cohanzick Zoo is one of New Jersey’s oldest zoos while the Sunset Lake is renowned for being the best place in the state to enjoy a picturesque sunset.
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Disclosure: none. 15 Best Places to Retire in New Jersey is originally published on Insider Monkey.
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