How Much Income Do Keene Residents Actually Need for a Comfortable Retirement?

When it comes to Keene, NH retirement planning, one question often dominates the conversation: “What’s your number?”

Sarah and Mike, both 55, recently sat at their kitchen table in their West Keene home, surrounded by coffee cups and financial statements. After 30 years of steady careers at Cheshire Medical center and a local manufacturing plant, they’re finally asking the question that keeps many busy professionals up at night: “Do we have enough to retire comfortably here in Keene?”

Like many couples approaching retirement in Keene, they’ve diligently saved in their 401(k)s and built up a respectable nest egg. However, between rising healthcare costs, Keene’s notably high property taxes, and the uncertainty of what “enough” actually means in today’s economy, they’re not sure if their savings will translate into the lifestyle they want.

If this sounds familiar, you’re not alone. Knowing how much income for retirement Keene residents truly need isn’t just about having a specific number in your account. Instead, it’s about understanding what life actually costs in our corner of the Monadnock Region—and building a plan that works with New Hampshire’s unique financial landscape.

Keene’s Cost of Living Reality Check

Let’s start with the numbers that matter. According to recent ERI Economic Research Institute data, Keene’s cost of living runs approximately 7% higher than the national average. That might not sound like much, but it adds up quickly when you’re living on a fixed income.

When assessing the Keene cost of living, retirees should consider the following areas:

Housing costs in Keene tell an interesting story for retirees. While the median home value of $205,000 makes homeownership more accessible than in many parts of New England, it’s what happens after you own the home that can reshape your retirement budget. Many retirees are surprised to discover that their “paid-off” house still carries a significant monthly expense—and it’s not going away when their paycheck stops.

Healthcare expenses can also run above the national average—an important consideration when you’re no longer covered by an employer’s group health plan. Between Medicare supplements, dental coverage, and the kind of specialized care that might require trips to Dartmouth-Hitchcock or Boston, healthcare can quickly become a major budget item.

Everyday expenditures like groceries, utilities, and services can reflect Keene’s higher cost structure. While you might save money by not commuting to work every day, other costs, like heating during those long New Hampshire winters, can offset those savings.

The Property Tax Reality: What Every Keene Retiree Needs to Know

Here’s where the Keene property tax rate becomes a critical factor in retirement planning. Keene’s effective property tax rate sits at 3.10%—more than triple the national median of 1.02%. For a home assessed at the median value of $205,000, that translates to an annual tax bill of approximately $6,343.

Compare that to the national median property tax bill of $2,400, and you’re looking at nearly $4,000 more per year (or roughly $330 extra per month) just in property taxes. That’s a significant ongoing expense that doesn’t disappear when you leave the workforce.

However, there is some good news on the Granite State tax front. New Hampshire doesn’t tax earned income or retirement distributions. Additionally, as of January 1, 2025, the state no longer imposes the Interest and Dividends Tax that previously impacted investment income. This means your retirement withdrawals, Social Security benefits, and investment income won’t face state-level taxation—a meaningful advantage that helps offset some of the higher local costs.

National Benchmarks vs. Keene Reality

According to recent data from GOBankingRates based on Bureau of Labor Statistics research, the average American household headed by someone 65 or older spends about $57,866 per year—let’s call it $58,000 for easy math, or roughly $4,800 per month.  

Remember, that monthly breakdown is the national average. For Keene, NH retirement planning, we must adjust for the 7% cost premium. Applying that adjustment brings us to approximately $62,000 per year, or about $5,200 per month, as a baseline for what retirees actually spend in our area.

That $62,000 baseline covers the essentials: housing (including those higher property taxes), transportation, healthcare, food, and basic living expenses. Still, many of our clients want more than just the essentials—they want what would be considered a comfortable retirement in Keene

Sample Calculation: Your Comfortable Income Target

Let’s work through a realistic example for a Keene retirement income target. Imagine you’re that couple from our opening story—mortgage paid off, health insurance sorted out, but wanting to maintain your current lifestyle plus have some flexibility for travel, hobbies, and unexpected expenses.

Here’s how we might build your annual income target:

It’s important to note, these are just estimates, and there’s no such thing as a one-size-fits-all number. Grocery and utility costs can often feel like a moving target. Your actual target might be higher if you’re planning extensive travel or lower if you’re comfortable with a simpler lifestyle. The key is working through your own priorities with a professional financial planner to build a strategy that aligns with your values and goals. 

Bridging the Gap: From Savings to Sustainable Income

Once you know your target, the question becomes: how do you turn your accumulated savings into reliable income? This is where local residents planning for retirement need strategies that work with New Hampshire’s tax advantages. Some considerations include: 

Social Security
Timing plays a crucial role. For many couples, delaying Social Security until full retirement age (or even age 70) can significantly boost monthly benefits. Since Social Security isn’t taxed at the state level in New Hampshire, every dollar of increased benefit is money in your pocket.

Withdrawal Strategies
How you withdraw from your accounts becomes critical when you’re looking at potentially 30+ years of retirement. The traditional 4% rule suggests you can withdraw 4% of your portfolio annually (adjusted each year for inflation) with reasonable confidence it will last. However, effective withdrawal strategies aren’t just about standardized percentages—they’re about tax efficiency. With New Hampshire’s favorable tax treatment of retirement income, you have flexibility in how you sequence withdrawals from different account types.

Roth Conversions
A Roth conversation can be particularly powerful for New Hampshire retirement cost management. Since you won’t pay state taxes on the conversion, you might find opportunities to convert traditional IRA funds to Roth accounts during lower-income years, creating tax-free income streams for later.

Healthcare Planning
Managing coverage deserves special attention during retirement. The average 65-year-old household spends nearly $8,000 annually on healthcare—and that’s with Medicare coverage. Planning for long-term care costs, which aren’t fully covered by Medicare, is essential for protecting your nest egg.

Your Next Step: Getting the Answers You Need

If you’re asking yourself how much income for retirement Keene residents actually need, you’re asking the right question. However, the answer isn’t something you’ll find in a one-size-fits-all article or online calculator—it’s something you discover by working through your specific situation with advisors who understand both the local landscape and your personal goals.

At Birch Financial Group, we believe retirement planning isn’t about hitting some magic number. Instead, it’s about designing a lifestyle that aligns with your values and creating an income plan that can support it through all of life’s changes.

Whether you’re wondering if you can retire early, concerned about healthcare costs, or trying to figure out the most tax-efficient way to access your savings, we’re here to help you get clarity on what’s possible and confidence in your plan.

Schedule Your Complimentary Consultation With Birch Financial Group

Ready to move from wondering to knowing? Schedule a complimentary “True Wealth” Roadmap session with our CFP® team. We’ll review your specific situation and help you design a retirement strategy that aligns with your goals. 

As New Hampshire residents ourselves, we understand the local factors that impact your retirement planning and can help you build a strategy that supports the lifestyle you’ve worked so hard to achieve.