How much money you need to retire in every U.S. state—it's at least $1 million in 16 places (2024)

The cost of retirement can vary by as much as $1.36 million depending on where you live in the U.S., according to an analysis by personal finance website GOBankingRates.com.

To determine the amount of money needed to retire, GOBankingRates calculated the annual expenses for housing, food, utilities, transportation and health care in each state for people 65 years or older, using data from the Bureau of Labor Statistics and the Missouri Economic Research and Information Center.

Those totals were then multiplied by 25 or 30 years, excluding Social Security payments, since those benefits would supplement retirees' personal savings. The studyassumes that retirees will receive annual Social Security payments of $21,566.76, the U.S. average based on the most recent information provided by the Social Security Administration.

It's important to note that these projections don't include adjustments for inflation and that the annual cost of living in each state will likely rise over time. However, invested savings are also likely to rise in value during that time.

For a 25-year retirement, you'd need just over $2 million in Hawaii — the most of all states by far.

That's followed by Massachusetts, California and New York, along with 12 other states where you'd need at least $1 million saved up to retire. Most of these states are along the coast and contain large cities where the cost of housing tends to be the highest.

In contrast, you'd need less than $700,000 for a 25-year retirement in West Virginia, the lowest in the country. The U.S. average for retirement expenses is $835,453 for 25 years and $1,003,548 for 30 years.

But keep in mind that while these projections can be a useful tool in understanding how much you may need to retire, your specific retirement requirements will vary based on your needs and priorities.

Here's a look at the annual retirement costs for each state, along with the totals needed to retire in 25 and 30 years — excluding Social Security benefits — in alphabetical order.

Alabama

Annual retirement expenditures: $50,995
Minimum needed for 25 years of retirement: $735,718
Minimum needed for 30 years of retirement: $883,745

Alaska

Annual retirement expenditures: $73,082
Minimum needed for 25 years of retirement: $1,287,880
Minimum needed for 30 years of retirement: $1,547,003

Arizona

Annual retirement expenditures: $63,600
Minimum needed for 25 years of retirement: $1,050,826
Minimum needed for 30 years of retirement: $1,262,253

Arkansas

Annual retirement expenditures: $51,169
Minimum needed for 25 years of retirement: $740,054
Minimum needed for 30 years of retirement: $888,954

California

Annual retirement expenditures: $78,864
Minimum needed for 25 years of retirement: $1,432,425
Minimum needed for 30 years of retirement: $1,720,630

Colorado

Annual retirement expenditures: $61,807
Minimum needed for 25 years of retirement: $1,006,017
Minimum needed for 30 years of retirement: $1,208,429

Connecticut

Annual retirement expenditures: $65,855
Minimum needed for 25 years of retirement: $1,107,199
Minimum needed for 30 years of retirement: $1,329,968

Delaware

Annual retirement expenditures: $58,281
Minimum needed for 25 years of retirement: $917,845
Minimum needed for 30 years of retirement: $1,102,516

Florida

Annual retirement expenditures: $58,396
Minimum needed for 25 years of retirement: $920,736
Minimum needed for 30 years of retirement: $1,105,989

Georgia

Annual retirement expenditures: $52,557
Minimum needed for 25 years of retirement: $774,745
Minimum needed for 30 years of retirement: $930,625

Hawaii

Annual retirement expenditures: $103,610
Minimum needed for 25 years of retirement: $2,051,077
Minimum needed for 30 years of retirement: $2,463,757

Idaho

Annual retirement expenditures: $57,240
Minimum needed for 25 years of retirement: $891,827
Minimum needed for 30 years of retirement: $1,071,263

Illinois

Annual retirement expenditures: $53,077
Minimum needed for 25 years of retirement: $787,754
Minimum needed for 30 years of retirement: $946,251

Indiana

Annual retirement expenditures: $52,672
Minimum needed for 25 years of retirement: $777,636
Minimum needed for 30 years of retirement: $934,097

Iowa

Annual retirement expenditures: $51,978
Minimum needed for 25 years of retirement: $760,291
Minimum needed for 30 years of retirement: $913,262

Kansas

Annual retirement expenditures: $50,533
Minimum needed for 25 years of retirement: $724,154
Minimum needed for 30 years of retirement: $869,855

Kentucky

Annual retirement expenditures: $53,886
Minimum needed for 25 years of retirement: $807,990
Minimum needed for 30 years of retirement: $970,559

Louisiana

Annual retirement expenditures: $52,441
Minimum needed for 25 years of retirement: $771,854
Minimum needed for 30 years of retirement: $927,152

Maine

Annual retirement expenditures: $64,005
Minimum needed for 25 years of retirement: $1,060,944
Minimum needed for 30 years of retirement: $1,274,407

Maryland

Annual retirement expenditures: $66,375
Minimum needed for 25 years of retirement: $1,120,208
Minimum needed for 30 years of retirement: $1,345,595

Massachusetts

Annual retirement expenditures: $85,571
Minimum needed for 25 years of retirement: $1,600,097
Minimum needed for 30 years of retirement: $1,922,038

Michigan

Annual retirement expenditures: $52,614
Minimum needed for 25 years of retirement: $776,191
Minimum needed for 30 years of retirement: $932,361

Minnesota

Annual retirement expenditures: $54,580
Minimum needed for 25 years of retirement: $825,336
Minimum needed for 30 years of retirement: $991,394

Mississippi

Annual retirement expenditures: $50,128
Minimum needed for 25 years of retirement: $714,036
Minimum needed for 30 years of retirement: $857,701

Missouri

Annual retirement expenditures: $51,053
Minimum needed for 25 years of retirement: $737,163
Minimum needed for 30 years of retirement: $885,482

Montana

Annual retirement expenditures: $59,610
Minimum needed for 25 years of retirement: $951,090
Minimum needed for 30 years of retirement: $1,142,450

Nebraska

Annual retirement expenditures: $52,614
Minimum needed for 25 years of retirement: $776,191
Minimum needed for 30 years of retirement: $932,361

Nevada

Annual retirement expenditures: $58,454
Minimum needed for 25 years of retirement: $922,181
Minimum needed for 30 years of retirement: $1,107,725

New Hampshire

Annual retirement expenditures: $66,838
Minimum needed for 25 years of retirement: $1,131,771
Minimum needed for 30 years of retirement: $1,359,485

New Jersey

Annual retirement expenditures: $63,773
Minimum needed for 25 years of retirement: $1,055,162
Minimum needed for 30 years of retirement: $1,267,462

New Mexico

Annual retirement expenditures: $54,291
Minimum needed for 25 years of retirement: $818,109
Minimum needed for 30 years of retirement: $982,713

New York

Annual retirement expenditures: $73,140
Minimum needed for 25 years of retirement: $1,289,325
Minimum needed for 30 years of retirement: $1,548,739

North Carolina

Annual retirement expenditures: $55,621
Minimum needed for 25 years of retirement: $851,354
Minimum needed for 30 years of retirement: $1,022,647

North Dakota

Annual retirement expenditures: $54,522
Minimum needed for 25 years of retirement: $823,890
Minimum needed for 30 years of retirement: $989,658

Ohio

Annual retirement expenditures: $53,308
Minimum needed for 25 years of retirement: $793,536
Minimum needed for 30 years of retirement: $953,196

Oklahoma

Annual retirement expenditures: $50,186
Minimum needed for 25 years of retirement: $715,482
Minimum needed for 30 years of retirement: $859,437

Oregon

Annual retirement expenditures: $66,317
Minimum needed for 25 years of retirement: $1,118,762
Minimum needed for 30 years of retirement: $1,343,858

Pennsylvania

Annual retirement expenditures: $54,811
Minimum needed for 25 years of retirement: $831,118
Minimum needed for 30 years of retirement: $998,339

Rhode Island

Annual retirement expenditures: $64,756
Minimum needed for 25 years of retirement: $1,079,735
Minimum needed for 30 years of retirement: $1,296,979

South Carolina

Annual retirement expenditures: $54,522
Minimum needed for 25 years of retirement: $823,890
Minimum needed for 30 years of retirement: $989,658

South Dakota

Annual retirement expenditures: $53,077
Minimum needed for 25 years of retirement: $787,754
Minimum needed for 30 years of retirement: $946,251

Tennessee

Annual retirement expenditures: $52,267
Minimum needed for 25 years of retirement: $767,518
Minimum needed for 30 years of retirement: $921,943

Texas

Annual retirement expenditures: $53,771
Minimum needed for 25 years of retirement: $805,100
Minimum needed for 30 years of retirement: $967,086

Utah

Annual retirement expenditures: $60,420
Minimum needed for 25 years of retirement: $971,326
Minimum needed for 30 years of retirement: $1,166,758

Vermont

Annual retirement expenditures: $66,433
Minimum needed for 25 years of retirement: $1,121,653
Minimum needed for 30 years of retirement: $1,347,331

Virginia

Annual retirement expenditures: $58,627
Minimum needed for 25 years of retirement: $926,517
Minimum needed for 30 years of retirement: $1,112,934

Washington

Annual retirement expenditures: $66,895
Minimum needed for 25 years of retirement: $1,133,217
Minimum needed for 30 years of retirement: $1,361,221

West Virginia

Annual retirement expenditures: $49,261
Minimum needed for 25 years of retirement: $692,354
Minimum needed for 30 years of retirement: $831,657

Wisconsin

Annual retirement expenditures: $55,158
Minimum needed for 25 years of retirement: $839,790
Minimum needed for 30 years of retirement: $1,008,757

Wyoming

Annual retirement expenditures: $53,886
Minimum needed for 25 years of retirement: $807,990
Minimum needed for 30 years of retirement: $970,559

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Millennial Money

How much money you need to retire in every U.S. state—it's at least $1 million in 16 places (2024)

FAQs

How much money do you need to retire in every US state? ›

States Ranked by the Highest Annual Cost for a Comfortable Retirement

	State	Retirement Savings Needed for the Years Between Retirement Age and 80
3	California	$1,332,457
4	Alaska	$1,505,740
5	Oregon	$1,333,467
6	New York	$1,246,578

47 more rows

Discover More Details ›

What is the $1 million dollar retirement in the US? ›

How long will $1 million in retirement savings last? In more than 20 U.S. states, a million-dollar nest egg can cover retirees' living expenses for at least 20 years, a new analysis shows. It's worth noting that most Americans are nowhere near having that much money socked away.

Learn More Now ›

How much money do you need to retire in the USA today? ›

In a 2023 report from Northwestern Mutual, Americans said they would need $1.27 million, on average, to retire comfortably.

Can I retire at $50 with $4 million? ›

In short, yes, there is much potential for early retirement at 50 or even 40 if you have $4 million set aside for your retirement. As for whether it will be possible in your particular circ*mstances? It all comes down to how much you comfortably need as an income yearly and monthly.

What is the cheapest state to retire on Social Security? ›

What state is the best financially to retire in? A 2022 Kiplinger analysis ranked the most tax-friendly places in the country for retirement: Alaska, Florida, Iowa, Mississippi, Nevada, Pennsylvania, South Dakota, Tennessee, Texas, and Wyoming.

Show Me More ›

How long will 1 million dollars last in retirement in every state? ›

A recent analysis determined that a $1 million retirement nest egg may only last about 20 years depending on what state you live in. Based on this, if you retire at age 65 and live until you turn 84, $1 million will probably be enough retirement savings for you.

How long will $500,000 last in retirement? ›

Summary. If you withdraw $20,000 from the age of 60, $500k will last for over 30 years. Retirement plans, annuities and Social Security benefits should all be considered when planning your future finances. You can retire at 50 with $500k, but it will take a lot of planning and some savvy decision-making.

Read The Full Story ›

What percentage of retirees have $2 million dollars? ›

According to EBRI estimates based on the latest Federal Reserve Survey of Consumer Finances, 3.2% of retirees have over $1 million in their retirement accounts, while just 0.1% have $5 million or more.

Find Out More ›

Can you live off interest of $1 million dollars? ›

Once you have $1 million in assets, you can look seriously at living entirely off the returns of a portfolio. After all, the S&P 500 alone averages 10% returns per year. Setting aside taxes and down-year investment portfolio management, a $1 million index fund could provide $100,000 annually.

Keep Reading ›

How much money do most people retire with? ›

Average retirement savings balance by age

Age group	Average retirement savings balance amount
45-54	$313,220.
55-64	$537,560.
65-74	$609,230.
75 and older	$462,4100.

2 more rows

May 7, 2024

Learn More ›

What percentage of retirees have $3 million dollars? ›

Specifically, those with over $1 million in retirement accounts are in the top 3% of retirees. The Employee Benefit Research Institute (EBRI) estimates that 3.2% of retirees have over $1 million, and a mere 0.1% have $5 million or more, based on data from the Federal Reserve Survey of Consumer Finances.

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What's the magic number to retire? ›

Americans' “magic number” for retirement surged to an all-time high – rising much faster than the rate of inflation while swelling more than 50% since the onset of the pandemic.

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Is 4 million a good nest egg? ›

A $4 million nest egg will likely allow you to retire comfortably at age 55. The major challenge will be accumulating that much capital by 55 – about a decade before most people stop working.

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How long will 4000000 last? ›

Strategies for Making $4 Million Last

Here are some common tips and strategies: The 4% rule: The 4% rule says that you can withdraw 4% of your total retirement savings each year, adjusted for inflation and your savings on average will last at least 30 years.

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What is the maximum social security benefit? ›

The maximum Social Security benefit you can receive in 2024 ranges from $2,710 to $4,873 per month, depending on the age you retire. "Maximum benefits can be received by delaying the start of benefits until age 70 since benefits increase by about 8% for each year you delay beyond full retirement age.

Read On ›

Is $2 million enough to retire at 60? ›

It all depends on your lifestyle and the strategies you follow. If you have $2 million and want to retire at age 60, it is important to start with your desired lifestyle and how much that lifestyle will cost you. This will help determine the amount of money you should have in your accounts.

Can you retire with 500k in us? ›

Most people in the U.S. retire with less than $1 million. $500,000 is a healthy nest egg to supplement Social Security and other income sources. Assuming a 4% withdrawal rate, $500,000 could provide $20,000/year of inflation-adjusted income. The 4% “rule” is oversimplified, and you will likely spend differently.