Retiring Comfortably Costs Couples More Than $100K Annually in These States

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The cost of a “comfortable” retirement can vary greatly depending on several factors, including the standard of living you desire and the local cost of living where you choose to retire. So while there’s no one-size-fits-all number, the general rule of thumb, based on the 50/30/20 budget rule, is that you should be able to cover your essential costs — including housing and other expenditures — with 50% of your retirement income.

To find the states where a couple needs more than $100,000 annually to retire comfortably, GOBankingRates first found the total annual living costs by analyzing the national average consumer expenditure costs for retired couples, the cost of living indexes for each state and the average mortgage costs for a single-family home. Then, using the 50/30/20 rule, the household income needed to live comfortably in each state was found.

Here’s a look at the states where retiring comfortably costs the average couple more than $100,000 a year.

Top 10 Most Expensive Places for Couples To Retire Comfortably

A retired couple would need more than $100,000 annually to live comfortably in all of the most expensive states for retirement. Here’s a look at the top 10 most expensive states for retired couples, along with the total annual cost of living comfortably:

1. Hawaii: $232,837
2. California: $182,841
3. Massachusetts: $158,648
4. Washington: $143,658
5. New Jersey: $135,157
6. Oregon: $128,797
7. New York: $128,005
8. Colorado: $127,304
9. Utah: $125,529
10. New Hampshire: $123,361

In Hawaii, the annual cost for a retired couple to live comfortably exceeds $200,000. The state has both the highest average monthly mortgage cost ($5,584) and the highest average monthly cost of living expenditures for a retired couple ($4,117).

California has the second-highest average monthly mortgage cost ($4,483) and the second-highest average monthly expenditure cost ($3,136).

A retired couple would also need $100,000 annually to live comfortably in the following states:

• Rhode Island
• Maryland
• Arizona
• Nevada
• Alaska
• Idaho
• Connecticut
• Montana
• Maine
• Vermont
• Florida
• Virginia
• Delaware

The Cost To Retire Comfortably in Popular Retirement Destinations

None of the states that are traditionally thought of as retirement destinations are featured in the top 10 most expensive states for a couple to retire comfortably, though two do require $100,000 annually. In Arizona, a couple needs $116,530 a year to retire comfortably, while in Florida, they would need $113,613.

The annual cost for a retired couple to live comfortably is below six figures in other popular states for retirement, including Georgia, North Carolina and Texas, where they would need $90,969, $94,035 and $86,600, respectively.

In terms of overall affordability for a retired couple to live comfortably, Texas ranks No. 18 among the states, while Georgia ranks No. 24, North Carolina ranks No. 25, Florida ranks No. 30 and Arizona ranks No. 38.

Top 10 Most Affordable Places for Couples To Retire Comfortably

In the most affordable states, a couple can retire comfortably for well under $100,000 a year. Here’s a look at the top 10 most affordable states for retired couples, along with the total annual cost of living comfortably:

1. West Virginia: $65,674
2. Mississippi: $68,926
3. Oklahoma: $71,151
4. Arkansas: $71,714
5. Alabama: $73,299
6. Louisiana: $73,537
7. Kansas: $75,290
8. Iowa: $75,725
9. Kentucky: $75,897
10. Missouri: $78,091

West Virginia has the lowest average monthly mortgage cost ($948) and the second-lowest average monthly cost of living expenditures for a retired couple ($1,788). Alabama has the lowest monthly cost of living expenditures ($1,778); Mississippi has the second-lowest average monthly mortgage cost ($1,014).

Methodology: For this study, GOBankingRates analyzed each state to find the cost of living for retired couples. GOBankingRates used the national average consumer expenditure costs for households with two consumers and no earners, sourced from The Bureau of Labor Statistics Consumer Expenditure Survey. The Bureau of Labor Statistics Consumer Expenditure Survey reports two consumer units with no earners have an average age of 68.3, and for this study, GOBankingRates considers these residents to be retired couples. Using the cost of living indexes for each state, as sourced from the Missouri Economic and Research Information Center, along with the national average expenditure costs for two consumers with no earners, as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey, the average cost of living was calculated. The average single-family home value was sourced from the Zillow Home Value Index for September 2024. By assuming a 10% downpayment and using the national average 30-year fixed mortgage rate, as sourced from the Federal Reserve Economic Data, the average mortgage cost was calculated for each state. Using the average mortgage and expenditure costs, the total cost of living was calculated. Using the 50/30/20 budgeting rule that states that needs should not exceed 50% of income, the total cost of living was doubled to find the income needed to live comfortably. All data was collected on and is up to date as of Oct. 22, 2024.

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