From 24/7 Wall St. · David Beren · · 1m 50s
Retirees Pick One Hawaiian Island After Pricing
Retirees who price every Hawaiian island end up on the same one, according to math and medical needs.
In brief
Retirees who price every Hawaiian island end up on the same one, according to math and medical needs. Retirees who calculate Hawaii's costs and medical needs choose Oahu over other islands for safety and affordability. Originally reported by 24/7 Wall St..
Retirees Who Price Every Hawaiian Island
Most mainlanders dream of five different Hawaiian islands, but retirees who actually run the numbers end up on the same one, driven by a calculation that has nothing to do with beaches.
Hawaii's High Cost of Living
Hawaii’s regional price parity is 109.951 against a national index of 100, tied with the District of Columbia and behind California at 110.72.
Hawaii's Tax Advantages for Retirees
Hawaii’s income tax brackets are progressive, but Social Security benefits and employer-funded pension income are fully exempt from state income tax.
Property Tax Savings for Older Owners
Hawaii’s county property tax rates are among the lowest in the country, with home exemptions growing at age 60 and again at 70 for owner-occupants.
Oahu's Medical Infrastructure
Oahu has the state’s only tertiary care infrastructure, its only Level I trauma center, and the deepest bench of specialists.
Oahu's Cost Advantages
Oahu has the lowest grocery shipping premium, the only international airport with frequent mainland nonstops, and the deepest labor market for trades.
Why Retirees Stay on Oahu
For a retiree in their late seventies, a serious cardiac event, complex cancer, or stroke often means inter-island medevac to Honolulu, costing five figures and not always fully covered.
The Cost Calculation for Retirees
For a couple targeting a comfortable Oahu retirement, plan on roughly $120,000 a year in current dollars, net of a paid-off or largely paid-off home.
Flights and Long-Term Costs
Retirees must price flights for weddings, births, illnesses, and funerals over twenty-five years while 2,500 miles away.
The key point
Retirees who calculate Hawaii's costs and medical needs choose Oahu over other islands for safety and affordability.
