Retirement Savings: How Much Do You Really Need in Each State in the U.S. - Due (2024)

For many of us, the thought of retiring can be stressful and even daunting. The first step towards retirement is understanding how much money you need. Despite the fact that everyone has a different vision of retirement and a different number of financial freedom, there is a bare minimum amount of money required to retire in every state.

Below are some statistics compiled from a variety of sources, including GoBankingRates, WalletHub, and Bankrate to name a few, that might surprise you. Fortunately, most states do not require more than $1 million in savings to retire for those who aren’t high-income earners or plan to have several million in net worth before they retire.

That said, let’s examine ehow much you need to retire in each state.

Table of Contents

1. Alabama

The Yellowhammer State offers many benefits to retirees, including a mild climate, low cost of living, and plenty of outdoor activities. Additionally, Alabama has some of the lowest property taxes in the country, as well as no income taxes on Social Security benefits. Any withdrawals from retirement accounts are taxed at 5%, though.

Also known for its affordable housing, electricity, and food, Alabama has the third lowest cost of living in the country. There is, however, a need to take into account the limited medical options available to residents of the state.

  • Annual cost of living: $50,995.48
  • Living expenses after Social Security income: $28,858.36
  • Amount you need to save to retire: $721,458.90

2. Alaska

From its rugged coastline to its snow-covered peaks, the Last Frontier is renowned for its natural beauty. Retirees can enjoy outdoor activities such as hiking, fishing, and skiing in a unique and awe-inspiring environment.

Alaska’s cost of living and average home value are lower than those in the rest of the country. It’s also extremely tax-friendly. There is no state income tax in Alaska, and Social Security, pensions, and retirement account withdrawals are not subject to state taxes. In addition, Alaska does not have an inheritance or estate tax.

  • Annual cost of living: $73,081.95
  • Living expenses after Social Security income: $50,944.83
  • Amount you need to save to retire: $1,273,620.80

3. Arizona

Arizona and its sublime weather allow retirees to enjoy various popular outdoor activities year-round. The Grand Canyon State has three national parks, 18 national monuments, and over 300 golf courses.

Moreover, Arizona’s property and income taxes are low for retirees. At 2.5%, Arizona’s flat income tax is the lowest in the country, and its property tax is ranked 12th in the country. Unlike other states, Arizona does not tax Social Security benefits and exempts retirement income from taxation.

  • Annual cost of living: $63,599.80
  • Living expenses after Social Security income: $41,462.68
  • Amount you need to save to retire: $1,036,567.00

4. Arkansas

Did you know that there are over 200 days of sunshine in the Natural State? The state is also one of the least expensive in the nation to live in. Particularly in smaller towns, real estate is affordable.

Aside from that, Arkansas has relatively low taxes, particularly on income and property. Social Security is not taxed, and property taxes are among the lowest in the nation. A retiree age 59.5 or older can exempt the first $6,000 of their IRA distribution while also exempting up to $6,000 from employer-sponsored retirement plans. Pensions received by military retirees are also tax-free.

  • Annual cost of living: $51,168.93
  • Living expenses after Social Security income: $29,031.81
  • Amount you need to save to retire: $725,795.30

5. California

Why do people retire to the Golden State? There is something for everyone in California, from its bustling cities to its scenic natural areas. In retirement, retirees will enjoy living in an environment filled with exploration and cultural opportunities.

However, according to a study published by U.S. News and World Report in 2024, California ranks as one of the most expensive states to retire in. Nonetheless, some retirees say California’s taxes are low. According to California’s progressive (or graduated) tax system, you pay different proportions of your income in taxes depending on how much you earn. If your yearly income is less than $100K, and especially when you subtract social security, retirement savings, Roth IRAs, and so on, you could easily save on taxes by staying in the state.

  • Annual cost of living: $78,863.75
  • Living expenses after Social Security income: $56,726.63
  • Amount you need to save to retire: $1,418,165.80

6. Colorado

You can choose between alpine and desert environments in Colorado’s climates to suit your preferences. In addition, WalletHub rated the Centennial State as the second-best state for retirees. Among its advantages are its tax-friendly conditions and the absence of estate or inheritance taxes.

Additionally, it has the lowest rate of social isolation among seniors, and very few residents above 65 live in poverty. The state also has some of the best geriatrics hospitals in the country and has a high rate of physically active seniors and seniors in good health.

  • Annual cost of living: $61,807.44
  • Living expenses after Social Security income: $39,670.32
  • Amount you need to save to retire: $991,758.10

7. Connecticut

Known for its historical landmarks, scenic natural areas, and peaceful and quaint towns, Connecticut boasts a number of attractions. With plenty of opportunities for exploration and cultural experiences, retirees can enjoy living in a peaceful environment.

However, the Constitution State is an expensive state, with living expenses higher than those in most other states.

  • Annual cost of living: $65,854.70
  • Living expenses after Social Security income: $43,717.58
  • Amount you need to save to retire: $1,092,939.60

8. Delaware

In addition to its tax benefits, Delaware has a low cost of living and a relaxed environment that appeals to retirees. In fact, WalletHub ranks it the fourth-best state for retirement, largely because it has the lowest overall tax burden, including no estate or inheritance tax.

What’s more, nearly 20% of the population in the First State is over the age of 65. As a result, Delaware has the second-lowest risk of social isolation for seniors, based on factors such as the number of seniors living alone, living without a partner, having a disability, and having difficulty living independently. In addition, Delaware has the lowest poverty rate among those 65 and older.

9. Florida

A warm, sunny climate throughout the year makes Florida a great place for retirees who prefer not to experience harsh winters. Additionally, the warm weather makes it possible to enjoy outdoor activities such as golf, tennis, and swimming.

WalletHub also named the Sunshine State as the best place to retire due to its relatively low taxes for retirees, including no estate, inheritance, or income taxes. Compared to most other states, adult day health care (health services for seniors who don’t require round-the-clock care) and homemaker services cost less.

  • Annual cost of living: $58,396.18
  • Living expenses after Social Security income: $36,259.06
  • Amount you need to save to retire: $906,476.50

10. Georgia

There are several benefits to retiring in Georgia, including a low cost of living, a warm climate, and tax benefits. Furthermore, Georgia’s rich history, outdoor recreation opportunities, and warm southern hospitality make it an ideal place for retirement.

In the Peach State, Social Security benefits are not taxed, pensions are only partially taxed, and retirement income exclusions of $65,000 are available to those over 62 and permanently disabled. A flat income tax of 5.49% will also be implemented in 2024.

  • Annual cost of living: $52,556.56
  • Living expenses after Social Security income: $30,419.44
  • Amount you need to save to retire: $760,486.10

11. Hawaii

A comfortable climate, warm weather, and beautiful scenery can be found in Hawaii. Additionally, the Aloha State has tax laws that exempt some types of retirement income, such as Social Security and pensions. In addition, Hawaii’s property tax rate is one of the lowest in the country at 0.28%.

Hawaii, however, can be extremely expensive. For those living on fixed retirement incomes, this may be problematic.

  • Annual cost of living: $103,609.86
  • Living expenses after Social Security income: $81,472.74
  • Amount you need to save to retire: $2,036,818.40

12. Idaho

The benefits of retiring to Idaho include tax breaks, natural beauty, a good climate, outdoor recreation, and quality healthcare. Gem State residents enjoy low property and sales taxes, as well as a state income tax exemption for Social Security. Public pensions may also be deducted.

  • Annual cost of living: $57,239.82
  • Living expenses after Social Security income: $35,102.70
  • Amount you need to save to retire: $877,567.50

13. Illinois

There are a variety of communities in the Prairie State, from bustling cities to quiet small towns. Experiencing diverse cultures and exploring diverse environments can be fun and enriching for retirees.

Furthermore, Illinois doesn’t tax retirement income, such as social security, pensions, and 401(k)s. The state is also known for its excellent public health care and affordable living.

  • Annual cost of living: $53,076.92
  • Living expenses after Social Security income: $30,939.80
  • Amount you need to save to retire: $773,495.10

14. Indiana

In Indiana, you can explore the Seven Pillars Nature Preserve and Mississinewa Reservoir and Lake, as well as enjoy a variety of cultural and recreational activities. In the Hoosier State, the cost of living is close to the national average. The income from Social Security and pensions is exempt from Indiana’s state income tax but not from retirement savings accounts.

  • Annual cost of living: $52,672.20
  • Living expenses after Social Security income: $30,535.08
  • Amount you need to save to retire: $763,377.00

15. Iowa

According to Bankrate’s survey of 2023, the Hawkeye State is the best place to retire. The reason? Iowa’s low crime rate, good healthcare options, and affordability were among the top three rankings.

Iowa excludes all Social Security income from income taxes and provides a deduction for other types of retirement income. Beginning in 2023, Iowans 65 and older will be exempt from paying state taxes on retirement income.

  • Annual cost of living: $51,978.3
  • Living expenses after Social Security income: $29,841.26
  • Amount you need to save to retire: $746,031.60

16. Kansas

A moderate climate, outdoor activities, and cultural events make the Jayhawk State an attractive retirement destination for many Americans. Additionally, Kansas has a moderate tax system and a low cost of living for retirees.

  • Annual cost of living: $50,532.93
  • Living expenses after Social Security income: $28,395.81
  • Amount you need to save to retire: $709,895.30

17. Kentucky

Low living costs, access to outdoor activities, a rich cultural heritage, and southern hospitality are some of the advantages of living here. According to WalletHub, though, the Bluegrass State is the worst state to retire to as it ranks 33rd in affordability, 41st in quality of life, and 46th in health care.

  • Annual cost of living: $53,886.38
  • Living expenses after Social Security income: $31,749.26
  • Amount you need to save to retire: $793,731.40

18. Louisanna

With access to outdoor activities, a rich culture, and delicious cuisine, retiring to the Pelican State will provide a unique and relaxing lifestyle. In addition, Louisiana’s cost of living is relatively low, and it doesn’t tax Social Security income or pension income.

Additionally, its property taxes are some of the lowest in the country.

  • Annual cost of living: $52,440.93
  • Living expenses after Social Security income: $30,303.81
  • Amount you need to save to retire: $757,595.20

19. Maine

Maine’s natural wonders include its rugged coastline, dense forests, and many lakes and rivers. Residents aged 62 or older are eligible for a property tax relief program. Additionally, up to $10,000 of pension income is exempt from state income taxes.

However, winters can be brutal in the Pine Tree State, and living costs are generally higher than the national average.

  • Annual cost of living: $64,004.53
  • Living expenses after Social Security income: $41,867.41
  • Amount you need to save to retire: $1,046,685.20

20. Maryland

As a result of its mild climate, the Free State enjoys four distinct seasons and few extreme temperatures. A number of tax benefits are available to retirees in Maryland as well, including no taxation on Social Security income. Withdrawals from retirement accounts are only a small portion of the benefits.

For individuals 65 years of age and older, Maryland’s Retirement Tax Elimination Act (RTEA) eliminates state income tax on retirement income.

  • Annual cost of living: $66,375.06
  • Living expenses after Social Security income: $44,237.94
  • Amount you need to save to retire: $1,105,948.60

21. Massachusetts

Massachusetts offers diversity, from historic cities to beautiful coastal towns. As a bonus, the Bay State is known for its excellent healthcare system. For retirees, Massachusetts is moderately tax-friendly. Most public pension funds and Social Security benefits are completely tax-exempt.

  • Annual cost of living: $85,570.64
  • Living expenses after Social Security income: $63,433.52
  • Amount you need to save to retire: $1,585,838.00

22. Michigan

In general, the housing, healthcare, and groceries cost in this state is lower than in many other states. Aside from picturesque shorelines and a vibrant arts and culture scene, the Wolverine State is also home to many close-knit communities and friendly people.

  • Annual cost of living: $52,614.38
  • Living expenses after Social Security income: $30,477.26
  • Amount you need to save to retire: $761,931.50

23. Minnesota

A vibrant culture, beautiful scenery, and quality healthcare are just a few things the Gopher State offers to retirees. Furthermore, Minnesota’s cost of living is reasonable, with housing and groceries more affordable than in other states.

  • Annual cost of living: $54,580.19
  • Living expenses after Social Security income: $32,443.07
  • Amount you need to save to retire: $811,076.80

24. Mississippi

A mild climate and a low cost of living make Mississippi an appealing place to live. The cost of living in Mississippi is 14% lower than the national average, making it the most affordable state for retirement.

All forms of retirement income are tax-free in Magnolia State, including Social Security, 401(k)s, IRAs, pensions, 403(b)s, and SEP-IRAs. In addition, Mississippi’s property taxes are relatively low, and its sales tax is moderate.

  • Annual cost of living: $50,128.21
  • Living expenses after Social Security income: $27,991.09
  • Amount you need to save to retire: $699,777.20

25. Missouri

In addition to beautiful mountains and lakes, the Show-me State has thriving communities and a relatively low cost of living. Missouri is 10% cheaper than the national average, making it a more affordable place to live.

Missouri offers moderate tax relief for retirees. Social Security retirement income is fully exempt for single seniors who earn less than $85,000 per year or joint filers who earn less than $100,000 per year. According to Bankrate, it ranks fourth among the best states for retirees. However, it suffers from poor healthcare, high crime rates, and natural disasters.

  • Annual cost of living: $51,053.29
  • Living expenses after Social Security income: $28,916.17
  • Amount you need to save to retire: $722,904.40

26. Montana

A four-season climate and access to natural beauty make the Treasure State an ideal retirement destination. In addition to Glacier National Park and seven national forests, Montana is home to many recreational activities, including skiing, fishing, and hiking. With picturesque mountain towns and bustling cities, Montana offers a variety of retirement options.

Montana’s cost of living is generally lower than the national average. However, it varies by location. Certain areas may have higher housing and healthcare costs.

  • Annual cost of living: $59,610.36
  • Living expenses after Social Security income: $37,473.24
  • Amount you need to save to retire: $936,831.00

27. Nebraska

The Cornhusker State is known for its friendly people and low cost of living, which could be a significant advantage for retirees with limited incomes. Nebraska generally offers more affordable housing, healthcare, and daily expenses.

A downside to Nebraska is that it is among the least tax-friendly states for retirees. Unlike most other states, it taxes Social Security benefits. Aside from military retirement income, it does not provide any exemptions or deductions for other types of retirement income.

  • Annual cost of living: $52,614.38
  • Living expenses after Social Security income: $30,477.26
  • Amount you need to save to retire: $761,931.50

28. Nevada

A warm and dry climate characterizes Nevada, with over 300 days of sunshine each year. In addition, the cost of living in the Silver State is generally lower than the national average. Besides that, Nevada doesn’t tax Social Security benefits, retirement income, or other retirement funds. Additionally, Nevada’s property tax rates are among the lowest in the country.

  • Annual cost of living: $58,454.00
  • Living expenses after Social Security income: $36,316.88
  • Amount you need to save to retire: $907,922.00

29. New Hampshire

The Granite State has mountains, forests, and even a piece of Atlantic coastline. Additionally, New Hampshire has a near-perfect healthcare score, a second-best crime score, and a high quality of life rating.

State income taxes are not imposed in New Hampshire, and retirement taxes are among the lowest in the country. In addition, retirees are eligible for property and inheritance tax benefits.

  • Annual cost of living: $66,837.61
  • Living expenses after Social Security income: $44,700.49
  • Amount you need to save to retire: $1,117,512.20

30. New Jersey

The Garden State gets a bad rap, but it’s not all terrible. Sure, it’s not the cheapest state to live in. However, there are exemptions for pensions and property taxes in New Jersey, as well as exemptions for Social Security benefits.

Aside from that, you are a short drive from NYC, Philly, the Jersey Shoe, and the Pocono Mountains.

  • Annual cost of living: $63,773.25
  • Living expenses after Social Security income: $41,636.13
  • Amount you need to save to retire: $1,040,903.40

31. New Mexico

People choose New Mexico for retirement because of its mild climate. Social security, however, is exempt from income tax in the Land of Enchantment. As for New Mexico’s cost of living index (COLI), it is 88.4, which is lower than the U.S. average of 100. Some necessities are cheaper than in the United States, such as groceries, healthcare, housing, and transportation

  • Annual cost of living: $54,291.10
  • Living expenses after Social Security income: $32,153.98
  • Amount you need to save to retire: $803,849.60

32. New York

A high quality of life can be found in the Empire State, which is home to excellent infrastructure, recreational opportunities, and easy access to healthcare. Retirees in New York are also eligible for tax exemptions.

However, retirees on a fixed income may have difficulty affording New York’s high cost of living. Healthcare and housing costs are particularly high in this state.

  • Annual cost of living: $73,139.77
  • Living expenses after Social Security income: $51,002.65
  • Amount you need to save to retire: $1,275,066.30

33. North Carolina

In addition to the Great Smoky Mountains and the Blue Ridge Mountains, North Carolina has over 40 state parks and 13 national parks. In addition, the Tar Heel State offers retirees a tax-free Social Security benefit, inheritance, and estate tax, as these taxes are not applicable there, allowing you to pocket more money and leave more to your heirs. While North Carolina does not charge state income taxes, it does charge taxes on most retirement accounts, including 401(k)s, pensions, and IRAs.

It doesn’t stop there; North Carolina’s cost of living index is 90.6, below the national average of 100.

  • Annual cost of living: $55,620.92
  • Living expenses after Social Security income: $33,483.80
  • Amount you need to save to retire: $837,094.90

34. North Dakota

Among the benefits of living in the Sioux State are its low cost of living, the presence of many outdoor activities, and its high quality of life. In addition, the state doesn’t tax Social Security retirement benefits and is family-friendly.

  • Annual cost of living: $54,522.37
  • Living expenses after Social Security income: $32,385.25
  • Amount you need to save to retire: $809,631.40

35. Ohio

In the Buckeye State, living costs are about 11% lower than they are elsewhere. There is no denying the state’s tax policies and housing benefits, particularly for retirees. Additionally, Ohio’s emphasis on community and culture makes it possible for senior citizens to thrive here rather than just live there.

  • Annual cost of living: $53,308.20
  • Living expenses after Social Security income: $31,171.08
  • Amount you need to save to retire: $779,276.90

36. Oklahoma

In the Sooner State, you can enjoy small-town living without the traffic of a big city and take advantage of the Illinois River and Tenkiller Lake for a variety of outdoor activities. Furthermore, Oklahoma has lower housing, healthcare, and transportation costs than many other states. In addition, Oklahoma doesn’t tax retirees’ Social Security income.

  • Annual cost of living: $50,186.02
  • Living expenses after Social Security income: $28,048.90
  • Amount you need to save to retire: $701,222.60

37. Oregon

Oregon’s stunning national parks, forests, and beaches offer abundant hiking, camping, fishing, and skiing opportunities. The Beaver State also has a vibrant cultural scene. In addition, Oregon’s medical assistance program, the Oregon Health Plan (OHP), provides health insurance to low-income residents.

Oregon, however, is a fairly expensive state with an average cost of living 16% higher than the national average.

  • Annual cost of living: $66,317.25
  • Living expenses after Social Security income: $44,180.13
  • Amount you need to save to retire: $1,104,503.20

38. Pennsylvania

As one of the original 13 colonies, Pennsylvania has made an important contribution to the country’s history. As a result, the Keystone State boasts a rich cultural history.

In addition, Pennsylvania has a lower cost of living than most other eastern states. An income-fixed retiree will particularly benefit from this. Medical centers and hospitals in Pennsylvania are highly ranked, and the healthcare system is high-quality. Also, payments from retirement accounts like 401(k)s and IRAs are tax-free.

  • Annual cost of living: $54,811.46
  • Living expenses after Social Security income: $32,674.34
  • Amount you need to save to retire: $816,858.60

39. Rhode Island

Rhode Island’s small-town feel, mild climate, and ocean access make it a great retirement destination. While the Ocean State is close to major cities, it also has its own rich cultural scene, with events like the Newport Jazz Festival.

As a drawback, Rhode Island’s cost of living is generally higher than the national average, which could be an issue for retirees with fixed incomes. Compared to other states, Rhode Island has higher housing and healthcare costs.

  • Annual cost of living: $64,756.16
  • Living expenses after Social Security income: $42,619.04
  • Amount you need to save to retire: $1,065,476.00

40. South Carolina

Many reasons make the Palmetto State an excellent retirement destination. For one, the mild climate and warm beaches allow for plenty of recreational activities outdoors.

Additionally, South Carolina receives an 89.3 BestPlaces Cost of Living score, meaning it costs 10.7% less to live there than the U.S. average and 0.0% less than the average in the state. Moreover, South Carolina offers many tax benefits for retirees, including not taxing Social Security benefits.

  • Annual cost of living: $54,522.37
  • Living expenses after Social Security income: $32,385.25
  • Amount you need to save to retire: $809,631.40

41. South Dakota

Those looking for a low cost of living, abundant outdoor activities, and friendly communities should consider the Coyote State — if they can handle its harsh winters. Aside from its natural beauty, South Dakota offers excellent healthcare and a variety of retirement options.

Furthermore, South Dakota is one of the least expensive states to retire to. Since there is no state income tax, everything from Social Security and private/public pensions to withdrawals from 401(k)s and IRAs is only taxable at the federal level.

  • Annual cost of living: $53,076.92
  • Living expenses after Social Security income: $30,939.80
  • Amount you need to save to retire: $773,495.10

42. Tennessee

There are plenty of natural wonders in the Volunteer State, including the Great Smoky Mountains National Park and the Tennessee River. Additionally, Tennessee has a rich cultural heritage, with many art galleries, museums, and music festivals.

Moreover, Tennessee has a low cost of living compared to many other states, so retirees on a fixed income can afford to live here. Several Tennessee areas also have relatively low taxes. There are also many highly-rated hospitals and medical centers in Tennessee.

  • Annual cost of living: $52,267.47
  • Living expenses after Social Security income: $30,130.35
  • Amount you need to save to retire: $753,258.80

43. Texas

With a cost of living of 94.2/100, Texas has a lower cost of living than the national average in areas like groceries, entertainment, utilities, and housing. However, that’s not all. There are many reasons why the Lone Star State makes a great retirement destination, including its tax-friendly environment, warm climate, and abundant recreational opportunities

  • Annual cost of living: $53,770.74
  • Living expenses after Social Security income: $31,633.62
  • Amount you need to save to retire: $790,840.50

44. Utah

Utah has an abundance of natural beauty, from its national parks like Zion, Bryce Canyon, and Arches to its mountain ranges and lakes. In addition to enjoying scenic surroundings, retirees can enjoy plenty of outdoor activities and exploration opportunities.

Furthermore, retirees seeking to stretch their retirement savings may find that the Beehive State has a relatively low tax burden compared to other states.

  • Annual cost of living: $60,419.81
  • Living expenses after Social Security income: $38,282.69
  • Amount you need to save to retire: $957,067.30

45. Vermont

The Green Mountain State is a good choice for retirees who enjoy outdoor activities. Vermont has small towns, hills, and forests, resulting in a peaceful environment with scenic views. It is also home to many attractions, including Lake Champlain, the Green Mountains, and the Sugarbush Ski Resort.

As a downside, Vermont’s cost of living is generally higher than the national average, which may be a concern for retirees on fixed incomes. Healthcare and housing costs, in particular, can be higher than in many other states.

  • Annual cost of living: $66,432.88
  • Living expenses after Social Security income: $44,295.76
  • Amount you need to save to retire: $1,107,394.10

46. Virginia

The Old Dominion is known for its mild climate, rich history including Colonial Williamsburg, Monticello, and Mount Vernon, and vibrant cultural scene. Hiking, camping, fishing, and boating can all be enjoyed in Virginia’s parks, forests, and beaches.

Compared to many other states, Virginia has relatively low taxes. Property taxes are generally lower than in neighboring states, and Social Security benefits and retirement income are not subject to state income taxes. The cost of living in Virginia, however, is generally higher than the national average.

  • Annual cost of living: $58,627.45
  • Living expenses after Social Security income: $36,490.33
  • Amount you need to save to retire: $912,258.30

47. Washington

According to a 2023 Global Residence Index study, the Evergreen State is the best state for retirement. Its low property taxes and lack of a state income tax are two reasons for its ranking. The state is also known for its stunning natural beauty, like Mount Rainier National Park, and its excellent medical facilities.

However, Washington can have relatively high living costs compared to other states. Washington is generally more expensive than other states regarding housing, food, and healthcare.

  • Annual cost of living: $66,895.43
  • Living expenses after Social Securityincome: $44,758.31
  • Amount you need to save to retire: $1,118,957.70

48. West Virginia

In addition to its natural beauty, with low housing costs and no Social Security tax, West Virginia is the most affordable state to retire, according to Bankrate. However, the Mountain State’s rural areas may have limited healthcare facilities, which may be a concern for retirees.

  • Annual cost of living: $49,260.94
  • Living expenses after Social Security income: $27,123.82
  • Amount you need to save to retire: $678,095.40

49. Wisconsin

Living costs in Wisconsin are generally lower than those in other parts of the country. Due to its lush forests and sparkling lakes, the Badger State is also popular among outdoor enthusiasts. Several festivals and events are held throughout the year, including Summerfest.

  • Annual cost of living: $55,158.37
  • Living expenses after Social Security income: $33,021.25
  • Amount you need to save to retire: $825,531.30

50. Wyoming

Yellowstone National Park, Grand Teton National Park, and the Rocky Mountains are among the highlights of the Equality State. Moreover, it has a strong sense of community and a low cost of living.

There are, however, concerns about harsh winters and limited healthcare options.

  • Annual cost of living: $53,886.38
  • Living expenses after Social Security income: $31,749.26
  • Amount you need to save to retire: $793,731.40

FAQs

Can you tell me exactly how much I need to live in each state?

In each state, the cost of living varies greatly depending on several factors, so giving an exact figure is impossible. However, there are a few factors that can influence this:

  • Location. There is generally a higher cost of living in urban areas like New York City or San Francisco than in rural areas.
  • Housing. Usually, housing is the largest expense. For example, renting an apartment in Manhattan will cost a lot more than buying a house in Kansas.
  • Lifestyle. The cost of living is significantly influenced by your spending habits. People who enjoy dining out and entertainment will need more than those who rarely eat out.

What resources can help me estimate the cost of living in different states?

You can estimate the cost of living using several online resources:

Are there any general trends in the cost of living across the US?

Some general trends are as follows:

  • The cost of living tends to be higher in coastal and inland states.
  • Higher wages are often found in states with high living costs.
  • Your cost of living can be significantly affected by taxes. While some states do not have an income tax, others have high property taxes or sales taxes.

What additional factors should I consider besides the cost of living?

Considering the cost of living in different states is important, but other factors can affect your financial needs. Among them are:

  • Taxes. Your disposable income can be impacted significantly by state and local taxes.
  • Job market. Make sure you are aware of the number of jobs available and the average salaries in your field.
  • Climate: Are you comfortable with the climate?
  • Housing market. The cost of renting and owning a home can vary greatly from state to state.
  • Lifestyle. How would you describe your ideal lifestyle? As such, consider urban versus rural living, amenities available, and cultural offerings.

Image Credit: John-Mark Smith; Pexels

Retirement Savings: How Much Do You Really Need in Each State in the U.S. - Due (2024)

FAQs

Retirement Savings: How Much Do You Really Need in Each State in the U.S. - Due? ›

According to the Federal Reserve's latest Survey of Consumer Finances, only about 10% of American retirees have managed to save $1 million or more. This leaves a significant 90% who fall short of this milestone.

What percentage of retirees have $1 million dollars? ›

According to the Federal Reserve's latest Survey of Consumer Finances, only about 10% of American retirees have managed to save $1 million or more. This leaves a significant 90% who fall short of this milestone.

How long $250000 will last in retirement in each state? ›

California. $250,000 will last: Years, months and days: 3 years, 6 months, 23 days. Annual expenditure: $70,130.

Is $1500 a month enough to retire on? ›

Jania says that living on $1,500 per month during retirement is definitely a possibility if you consider residing in certain states that tend to have a lower cost of living like Kansas, Mississippi or Alabama.

How long will $1 million last in retirement by state? ›

For retirees in California, the annual cost of living expenses would be $72,319.57, meaning a $1 million retirement fund would last for about 14 years.

How many people have $3000000 in savings? ›

According to a report by CNBC , only about 1.4 % of households in the USA have a net worth of $ 3,000,000 or more in savings . This equates to approximately 1.8 million households out of the total 129 million households in the country .

What does the average American retire with? ›

Data from the Federal Reserve's most recent Survey of Consumer Finances (2022) indicates the median retirement savings account balance for all U.S. families stands at $87,000.

What percentage of people retire with 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.

How much does the average 70 year old have in savings? ›

The Federal Reserve also measures median and mean (average) savings across other types of financial assets. According to the data, the average 70-year-old has approximately: $60,000 in transaction accounts (including checking and savings) $127,000 in certificate of deposit (CD) accounts.

What is a good monthly retirement income? ›

Average Monthly Retirement Income

According to data from the BLS, average 2022 incomes after taxes were as follows for older households: 65-74 years: $63,187 per year or $5,266 per month. 75 and older: $47,928 per year or $3,994 per month.

How long will $800 K last in retirement? ›

The duration will vary based on your age at retirement and actual spending levels each year. *The amounts for total interest, withdrawals, and taxes are for 30 years. With $800k initially saved, you could withdraw up to $60k annually and still have your portfolio last 20 years and beyond.

How much does the average retired couple live on per month? ›

For retired couples who are both receiving benefits, the average monthly income from Social Security is now $2,753. Common advice for couples is to have about 7.5x their yearly income saved for retirement.

Can a retiree live on $3,000 a month? ›

That means that even if you're not one of those lucky few who have $1 million or more socked away, you can still retire well, so long as you keep your monthly budget under $3,000 a month.

Is $6,000 a month enough to retire on? ›

With $6,000 a month, you have more money than the average retiree—Americans aged 65 and older generally spend roughly $4,000 a month—and therefore more options on where to live.

How much money does the average American need to retire comfortably? ›

Assuming an inflation rate of 4% and a conservative after-tax rate of return of 5%, you should aim for a savings target of $1.3 million to fund a 30-year retirement that begins at age 67. This would give you an investment portfolio that produces about $50,000 a year in income.

What state is the best financially to retire in? ›

A: The best state to retire in 2024 is sunny Florida, according to WalletHub, thanks to its relative affordability and high quality of life for seniors. That's followed by Colorado, Virginia, and Delaware.

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.

Is $1 million enough to retire at 55? ›

Long story short: It is possible to retire with $1 million at 55. However, $1 million may not be enough for most people. You'll need to create a customized financial plan based on your lifestyle goals if you want to try, though — there is no magic formula or a one-size-fits-all plan to do it.

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