The average American’s lack of savings paints a fairly discouraging picture of retirement.
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Many Americans see themselves working past age 65 out of financial necessity, according to the Pew Charitable Trusts, with some people planning to never retire at all. The pandemic also threw some people’s futures into question, especially those who had to draw from retirement savings during job loss or furlough.
But the amount of money you need to retire depends on where you live, due to state-by-state differences in the cost of living. In some areas of the country, a nest egg of a bit more than $500,000 may be sizable enough for retirement. In other regions, you have to build up your savings even more to reach at least $1.5 million in retirement funds, except for Hawaii which crosses the $2 million mark.
To ensure smooth sailing in your golden years, make sure you’re using the right tools to save for retirement. Check out how much exactly you need to save up in each state to live comfortably in your post-work years.
1. West Virginia
Annual cost of living: $49,260.94
Cost of living after using Social Security income: $27,123.82
How much you need in savings to retire: $678,095.40
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2. Mississippi
Annual cost of living: $50,128.21
Cost of living after using Social Security income: $27,991.09
How much you need in savings to retire: $699,777.20
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3. Oklahoma
Annual cost of living: $50,186.02
Cost of living after using Social Security income: $28,048.90
How much you need in savings to retire: $701,222.60
4. Kansas
Annual cost of living: $50,532.93
Cost of living after using Social Security income: $28,395.81
How much you need in savings to retire: $709,895.30
5. Alabama
Annual cost of living: $50,995.48
Cost of living after using Social Security income: $28,858.36
How much you need in savings to retire: $721,458.90
6. Missouri
Annual cost of living: $51,053.29
Cost of living after using Social Security income: $28,916.17
How much you need in savings to retire: $722,904.40
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7. Arkansas
Annual cost of living: $51,168.93
Cost of living after using Social Security income: $29,031.81
How much you need in savings to retire: $725,795.30
8. Iowa
Annual cost of living: $51,978.39
Cost of living after using Social Security income: $29,841.26
How much you need in savings to retire: $746,031.60
9. Tennessee
Annual cost of living: $52,267.47
Cost of living after using Social Security income: $30,130.35
How much you need in savings to retire: $753,258.80
10. Louisiana
Annual cost of living: $52,440.93
Cost of living after using Social Security income: $30,303.81
How much you need in savings to retire: $757,595.20
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11. Georgia
Annual cost of living: $52,556.56
Cost of living after using Social Security income: $30,419.44
How much you need in savings to retire: $760,486.10
12. Michigan
Annual cost of living: $52,614.38
Cost of living after using Social Security income: $30,477.26
How much you need in savings to retire: $761,931.50
13. Nebraska
Annual cost of living: $52,614.38
Cost of living after using Social Security income: $30,477.26
How much you need in savings to retire: $761,931.50
14. Indiana
Annual cost of living: $52,672.20
Cost of living after using Social Security income: $30,535.08
How much you need in savings to retire: $763,377.00
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15. Illinois
Annual cost of living: $53,076.92
Cost of living after using Social Security income: $30,939.80
How much you need in savings to retire: $773,495.10
16. South Dakota
Annual cost of living: $53,076.92
Cost of living after using Social Security income: $30,939.80
How much you need in savings to retire: $773,495.10
17. Ohio
Annual cost of living: $53,308.20
Cost of living after using Social Security income: $31,171.08
How much you need in savings to retire: $779,276.90
18. Texas
Annual cost of living: $53,770.74
Cost of living after using Social Security income: $31,633.62
How much you need in savings to retire: $790,840.50
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19. Kentucky
Annual cost of living: $53,886.38
Cost of living after using Social Security income: $31,749.26
How much you need in savings to retire: $793,731.40
20. Wyoming
Annual cost of living: $53,886.38
Cost of living after using Social Security income: $31,749.26
How much you need in savings to retire: $793,731.40
21. New Mexico
Annual cost of living: $54,291.10
Cost of living after using Social Security income: $32,153.98
How much you need in savings to retire: $803,849.60
22. North Dakota
Annual cost of living: $54,522.37
Cost of living after using Social Security income: $32,385.25
How much you need in savings to retire: $809,631.40
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23. South Carolina
Annual cost of living: $54,522.37
Cost of living after using Social Security income: $32,385.25
How much you need in savings to retire: $809,631.40
24. Minnesota
Annual cost of living: $54,580.19
Cost of living after using Social Security income: $32,443.07
How much you need in savings to retire: $811,076.80
25. Pennsylvania
Annual cost of living: $54,811.46
Cost of living after using Social Security income: $32,674.34
How much you need in savings to retire: $816,858.60
26. Wisconsin
Annual cost of living: $55,158.37
Cost of living after using Social Security income: $33,021.25
How much you need in savings to retire: $825,531.30
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27. North Carolina
Annual cost of living: $55,620.92
Cost of living after using Social Security income: $33,483.80
How much you need in savings to retire: $837,094.90
28. Idaho
Annual cost of living: $57,239.82
Cost of living after using Social Security income: $35,102.70
How much you need in savings to retire: $877,567.50
29. Delaware
Annual cost of living: $58,280.54
Cost of living after using Social Security income: $36,143.42
How much you need in savings to retire: $903,585.60
30. Florida
Annual cost of living: $58,396.18
Cost of living after using Social Security income: $36,259.06
How much you need in savings to retire: $906,476.50
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31. Nevada
Annual cost of living: $58,454.00
Cost of living after using Social Security income: $36,316.88
How much you need in savings to retire: $907,922.00
32. Virginia
Annual cost of living: $58,627.45
Cost of living after using Social Security income: $36,490.33
How much you need in savings to retire: $912,258.30
33. Montana
Annual cost of living: $59,610.36
Cost of living after using Social Security income: $37,473.24
How much you need in savings to retire: $936,831.00
34. Utah
Annual cost of living: $60,419.81
Cost of living after using Social Security income: $38,282.69
How much you need in savings to retire: $957,067.30
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35. Colorado
Annual cost of living: $61,807.44
Cost of living after using Social Security income: $39,670.32
How much you need in savings to retire: $991,758.10
36. Arizona
Annual cost of living: $63,599.80
Cost of living after using Social Security income: $41,462.68
How much you need in savings to retire: $1,036,567.00
37. New Jersey
Annual cost of living: $63,773.25
Cost of living after using Social Security income: $41,636.13
How much you need in savings to retire: $1,040,903.40
38. Maine
Annual cost of living: $64,004.53
Cost of living after using Social Security income: $41,867.41
How much you need in savings to retire: $1,046,685.20
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39. Rhode Island
Annual cost of living: $64,756.16
Cost of living after using Social Security income: $42,619.04
How much you need in savings to retire: $1,065,476.00
40. Connecticut
Annual cost of living: $65,854.70
Cost of living after using Social Security income: $43,717.58
How much you need in savings to retire: $1,092,939.60
41. Oregon
Annual cost of living: $66,317.25
Cost of living after using Social Security income: $44,180.13
How much you need in savings to retire: $1,104,503.20
42. Maryland
Annual cost of living: $66,375.06
Cost of living after using Social Security income: $44,237.94
How much you need in savings to retire: $1,105,948.60
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43. Vermont
Annual cost of living: $66,432.88
Cost of living after using Social Security income: $44,295.76
How much you need in savings to retire: $1,107,394.10
44. New Hampshire
Annual cost of living: $66,837.61
Cost of living after using Social Security income: $44,700.49
How much you need in savings to retire: $1,117,512.20
45. Washington
Annual cost of living: $66,895.43
Cost of living after using Social Security income: $44,758.31
How much you need in savings to retire: $1,118,957.70
46. Alaska
Annual cost of living: $73,081.95
Cost of living after using Social Security income: $50,944.83
How much you need in savings to retire: $1,273,620.80
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47. New York
Annual cost of living: $73,139.77
Cost of living after using Social Security income: $51,002.65
How much you need in savings to retire: $1,275,066.30
48. California
Annual cost of living: $78,863.75
Cost of living after using Social Security income: $56,726.63
How much you need in savings to retire: $1,418,165.80
49. District of Columbia
Annual cost of living: $84,009.55
Cost of living after using Social Security income: $61,872.43
How much you need in savings to retire: $1,546,810.90
50. Massachusetts
Annual cost of living: $85,570.64
Cost of living after using Social Security income: $63,433.52
How much you need in savings to retire: $1,585,838.00
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51. Hawaii
Annual cost of living: $103,609.86
Cost of living after using Social Security income: $81,472.74
How much you need in savings to retire: $2,036,818.40
Jordan Rosenfeld, Jami Farkas and Alexandria Bova contributed to the reporting for this article.
Methodology: In order to find how much you need in savings to retire in your state, GOBankingRates analyzed each state to find the cost of living indexes across grocery, healthcare, utilities, transportation, and housing from the Missouri Economic & Research Information Center. Using these cost of living indexes, GOBankingRates found the national average costs for people aged 65 and over across the expenditures; grocery, healthcare, utilities, transportation, and housing as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey to find the average expenditure costs for each category in each state. The average Social Security Income was subtracted from the overall expenditure to find the annual cost of living remaining. Assuming a drawdown of 4% a year to pay for living expenses, GOBankingRates calculated the savings needed to retire in each state. All data was collected and is up-to-date as-of December 27th, 2023.
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