Yahoo Finance Here’s Exactly How Much Savings You Need To Retire in Your State
The average American’s lack of savings paints a fairly discouraging picture of retirement.
Read More: 10 Things Boomers Should Always Buy in Retirement
Try This: 7 Common Debt Scenarios That Could Impact Your Retirement — and How To Handle Them
According to Pew Charitable Trusts, many Americans see themselves working past age 65 out of financial necessity, with some people never planning to retire at all. The pandemic threw some people’s futures into question, especially those drawing 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
Find Out: Retirement 2024: These Are the 7 Worst Places To Retire in South Carolina
For You: 4 Genius Things All Wealthy People Do With Their Money
Wealthy people know the best money secrets. Learn how to copy them.
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
Trending Now: Retirement Spending: 9 Things Even Spendthrifts Don’t Waste Money On
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
Read Next: Retirement Planning: Here’s How Much Money You Actually Need To Age in Place
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
Discover More: 7 Bills You Never Have To Pay When You Retire
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
Read More: I’m a Baby Boomer Who Had To Un-Retire: 3 Money Lessons I Wish I’d Known
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
Check Out: 4 Things Boomers Should Never Sell in Retirement
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
Find Out: Retirement 2024: These Are the 10 Worst Places To Retire in North Carolina
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
Check Out: 16 Best Places To Retire in the US That Feel Like Europe
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
Read Next: Suze Orman: Why Even Big Retirement Savers Are at Risk
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
Check Out: Passive Income Experts: 4 Passive Income Opportunities for Retirees To Generate Wealth
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
Read Next: Tony Robbins: 5 Retirement Planning Tips He Swears By
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
Read More: Here’s the Average Amount Retiree Households Spend in a Year
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
Read Next: Why Florida’s Retirees Are Fleeing — And Where They’re Going Instead
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
For You: Social Security 2024: 6 Changes That Impact Your Benefits
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 May 22, 2024.
More From GOBankingRates
I'm a Shopping Expert: 6 Things Retirees Should Never Put In Their Grocery Cart
6 Things to Try This Week if You're Behind on Your Savings Goals
This article originally appeared on GOBankingRates.com: Here’s Exactly How Much Savings You Need To Retire in Your State
