How much money do you need to retire in the US? State-by-state breakdown of retirement savings

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The amount of money you need to retire comfortably in the United States varies significantly depending on the state you choose to live in, with differences as high as $1.49 million, according to a new analysis by GoBankingRates.

As the cost of living continues to shift across the country, retirees are finding that their savings requirements differ dramatically, with some states requiring far less than others to maintain a comfortable lifestyle.

For instance, Hawaii stands out as the most expensive state for retirement, with a total savings requirement of around $2.21 million for a 65-year-old retiree to cover essential living expenses such as housing, groceries, healthcare, utilities, and transportation for the next 25 years.

On the other end of the spectrum, West Virginia requires a mere $712,913 to achieve the same goals, making it the most affordable state for retirement.

These figures are based on an analysis of the average annual living expenses in each state, using the most current data from the US Bureau of Labor Statistics.

GoBankingRates subtracted the average Social Security income from these expenses and applied the 4% rule — a widely accepted standard for withdrawing from retirement savings.

It’s important to note that this estimate reflects the bare minimum required and does not account for discretionary spending such as travel or entertainment, which could further impact a retiree’s budget.

Several factors, including housing, healthcare, transportation, and utilities, drive the differences in savings needs.

Housing, in particular, is the biggest contributor to cost variations across states. While the cost of housing in places like California and Hawaii is steep, other states like West Virginia and Mississippi are much more affordable.

Healthcare costs also play a significant role, as some regions have higher healthcare premiums and out-of-pocket expenses for retirees.

Here’s a look at the minimum retirement savings required for a comfortable life at age 65 in each state, covering just the essentials:

Retirement savings requirements by state:

• Alabama
  • Annual Living Costs: $53,357
  • Required Savings: $773,000
• Alaska
  • Annual Living Costs: $74,147
  • Required Savings: $1,292,753
• Arizona
  • Annual Living Costs: $67,778
  • Required Savings: $1,133,522
• Arkansas
  • Annual Living Costs: $53,477
  • Required Savings: $776,005
• California
  • Annual Living Costs: $86,946
  • Required Savings: $1,612,716
• Colorado
  • Annual Living Costs: $61,709
  • Required Savings: $981,803
• Connecticut
  • Annual Living Costs: $67,117
  • Required Savings: $1,116,998
• Delaware
  • Annual Living Costs: $60,207
  • Required Savings: $944,248
• Florida
  • Annual Living Costs: $61,529
  • Required Savings: $977,296
• Georgia
  • Annual Living Costs: $54,980
  • Required Savings: $813,559
• Hawaii
  • Annual Living Costs: $110,921
  • Required Savings: $2,212,084
• Idaho
  • Annual Living Costs: $61,289
  • Required Savings: $971,288
• Illinois
  • Annual Living Costs: $57,383
  • Required Savings: $873,646
• Indiana
  • Annual Living Costs: $54,859
  • Required Savings: $810,555
• Iowa
  • Annual Living Costs: $54,319
  • Required Savings: $797,035
• Kansas
  • Annual Living Costs: $52,095
  • Required Savings: $741,455
• Kentucky
  • Annual Living Costs: $55,821
  • Required Savings: $834,590
• Louisiana
  • Annual Living Costs: $56,181
  • Required Savings: $843,603
• Maine
  • Annual Living Costs: $68,199
  • Required Savings: $1,144,038
• Maryland
  • Annual Living Costs: $59,426
  • Required Savings: $924,720
• Massachusetts
  • Annual Living Costs: $88,268
  • Required Savings: $1,645,764
• Michigan
  • Annual Living Costs: $55,460
  • Required Savings: $825,577
• Minnesota
  • Annual Living Costs: $57,263
  • Required Savings: $870,642
• Mississippi
  • Annual Living Costs: $52,576
  • Required Savings: $753,472
• Missouri
  • Annual Living Costs: $53,477
  • Required Savings: $776,005
• Montana
  • Annual Living Costs: $56,482
  • Required Savings: $851,114
• Nebraska
  • Annual Living Costs: $55,761
  • Required Savings: $833,087
• Nevada
  • Annual Living Costs: $60,147
  • Required Savings: $942,746
• New Hampshire
  • Annual Living Costs: $66,997
  • Required Savings: $1,113,994
• New Jersey
  • Annual Living Costs: $68,980
  • Required Savings: $1,163,566
• New Mexico
  • Annual Living Costs: $55,821
  • Required Savings: $834,590
• New York
  • Annual Living Costs: $74,147
  • Required Savings: $1,292,753
• North Carolina
  • Annual Living Costs: $58,645
  • Required Savings: $905,192
• North Dakota
  • Annual Living Costs: $55,340
  • Required Savings: $822,572
• Ohio
  • Annual Living Costs: $57,023
  • Required Savings: $864,633
• Oklahoma
  • Annual Living Costs: $52,816
  • Required Savings: $759,481
• Oregon
  • Annual Living Costs: $66,096
  • Required Savings: $1,091,462
• Pennsylvania
  • Annual Living Costs: $57,023
  • Required Savings: $864,633
• Rhode Island
  • Annual Living Costs: $67,538
  • Required Savings: $1,127,514
• South Carolina
  • Annual Living Costs: $57,203
  • Required Savings: $869,140
• South Dakota
  • Annual Living Costs: $55,460
  • Required Savings: $825,577
• Tennessee
  • Annual Living Costs: $54,078
  • Required Savings: $791,027
• Texas
  • Annual Living Costs: $55,641
  • Required Savings: $830,083
• Utah
  • Annual Living Costs: $65,795
  • Required Savings: $1,083,951
• Vermont
  • Annual Living Costs: $68,559
  • Required Savings: $1,153,051
• Virginia
  • Annual Living Costs: $60,387
  • Required Savings: $948,755
• Washington
  • Annual Living Costs: $68,259
  • Required Savings: $1,145,540
• West Virginia
  • Annual Living Costs: $50,954
  • Required Savings: $712,913
• Wisconsin
  • Annual Living Costs: $59,666
  • Required Savings: $930,729
• Wyoming
  • Annual Living Costs: $57,323
  • Required Savings: $872,144

While these numbers provide a useful starting point, it’s essential to remember that they are averages and don’t account for personal lifestyle choices or unexpected costs like inflation or medical emergencies.

Depending on your lifestyle and retirement goals, your required savings may differ.

Retirement planning should be tailored to individual needs, but understanding these state-specific figures can offer retirees a helpful guide to budgeting for the future.

As the landscape of retirement continues to evolve, these estimates provide insight into how to better prepare for a comfortable and financially secure retirement.

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