If you are a military member and are thinking about getting out soon, the occupation you choose and where you choose to practice it should be two factors to consider when making your post-military career choices. The same job in different states can have very different rates of pay.
Compensation Differs by State
Take engineering for example. It is not only one of the most popular occupations in America but also one of the highest paying. For example, the mean annual salary for engineers overall in the U.S. is $100,770 – compared to the rest of the occupations at an average of $53,490 per year. Engineering pays almost double what other occupations pay. And you can use your Post 9/11 GI Bill to pay for most of your engineering degree.
This engineering field is one of the more popular fields in many states, but the pay varies greatly. The chart below shows the average annual salary in a random selection of ten states to show just how much of a pay difference exists. It ranges from a low in South Carolina at $105,340 to a high in California at $146,470.
Data courtesy of the Bureau of Labor Statistics
Cost of Living
One of the factors that drives annual salaries is the cost of living. One consideration when making a post-military career choice is where a specific job pays the most in comparison to that state’s cost of living. In most cases, there is a direct correlation, but there are exceptions. The cost-of-living figures include the cost in six categories:
- Housing
- Utilities
- Groceries
- Healthcare
- Transportation
- Miscellaneous expenses
In the chart below we see that cost-of-living ranges from a low of $32,979 in Arkansas to a high of $53,171 in California.
Data courtesy of the Missouri Economic Research and Information Center and Bureau of Labor Statistics
Do the Math on where you want to Live and Work
To get the best bang for your buck, one consideration would be the difference between your yearly salary and cost of living. In other words, the disposable income after subtracting the cost of living from the annual salary. In the chart below, the state with the highest disposable income is Tennessee, with Arkansas and Utah coming in 2nd and 3rd, respectively – although Tennessee’s annual salary came in 5th and Arkansas and Utah came in 6th and 3rd respectively.
Data courtesy of the U.S. Bureau of Labor Statistics
Facts on 10 States
- South Carolina
- This Southeast state has a cost of living 4.7% less than the national average
- Housing costs are 14.5% less, but utilities cost 6.5% more
- Kansas
- Cost of living in this Midwest state is 23% less than the national average
- Housing is an impressive 32.6% less than the national average
- It is the 3rd cheapest state to live in the U.S.
- Connecticut
- This East Coast state is the 12th most expensive state to live in
- Cost of living is 12.8% higher; mainly driven by the cost of utilities which is 30.4% higher
- Housing comes in at 22.6% higher than the rest of the nations
- Wisconsin
- Cost of living in this Upper Midwest state is 4.9% less than the national average
- Housing costs 15.3% less than the country as a whole
- However, healthcare costs 12.3% more
- Arkansas
- This is the 7th cheapest state to live in
- Expect to pay 11% less to live there
- Housing is 25.4% lower than the rest of the country
- Tennessee
- The Volunteer state has a cost of living that is 9.7% less than the national average
- It is the 9th cheapest state to live in overall.
- Idaho
- Cost of living is 1.4% lower than the average for the rest of the U.S.
- Housing, utilities, and healthcare are below the national average
- Groceries and transportation are higher at 1% and 5.2%, respectively
- Utah
- Cost of living is 3.2% higher than the national average
- Housing is 11% higher while transportation is 5.1% higher
- However, healthcare is 9% lower
- Maryland
- Maryland is another East Cost state that is expensive – the cost of living is 16.5% above the national average
- This is driven in part by high housing costs – 46.4$ higher than the national average
- California
- This is the 3rd most expensive state to live in
- Cost of living is 38.5% higher than the national average
- Housing is 98.8% above the national average
There are many different things to consider when getting ready to transition out of the military and start a new civilian career. Do your homework and factor in all the considerations that apply to you and your family. The average annual salary for your industry and cost of living should weigh heavily as these both affect the amount of disposable income left for your family.
