What a Comfortable Retirement Will Cost You in Each State
See how much a year of retirement will cost in your state.
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How much do you need to retire comfortably? It’s a question in the mind of every American saving for retirement. Unfortunately, there’s not a one-size-fits-all answer. There are several rules of thumb to help you figure out how much to save to retire. But the exact dollar amount you need will depend on a variety of factors — especially where you plan to live in retirement.
That’s because the cost of living varies from state to state. In some places, you can get by on even a small nest egg, while in others, even $2 million won’t be enough. Your age at retirement also plays a factor.
To pinpoint the average retirement income you would need to live comfortably throughout the U.S., GOBankingRates looked at five factors in all 50 states and the District of Columbia: an individual’s spending on groceries, healthcare, housing, utilities and transportation. Then, the annual retirement income needed to cover these living expenses was calculated, with an additional 20% to account for the “comfortable” aspect of retirement. The states are ranked from least to most expensive.
It should be noted that the suggested annual savings don’t include Social Security payouts, potential pension income or interest earned on savings.
Find out exactly how much you’ll need to retire comfortably in your state.
Last updated: July 10, 2020
Mississippi
- Total expenditures: $42,953
- 20% comfort buffer: $10,738
- Cost of a comfortable retirement annually: $53,691
Kansas
- Total expenditures: $43,866
- 20% comfort buffer: $10,966
- Cost of a comfortable retirement annually: $54,832
Oklahoma
- Total expenditures: $43,967
- 20% comfort buffer: $10,992
- Cost of a comfortable retirement annually: $54,959
New Mexico
- Total expenditures: $44,221
- 20% comfort buffer: $11,055
- Cost of a comfortable retirement annually: $55,276
Read: 50 Things Every 50-Something Should Know About Retirement
Arkansas
- Total expenditures: $44,728
- 20% comfort buffer: $11,182
- Cost of a comfortable retirement annually: $55,910
Missouri
- Total expenditures: $44,779
- 20% comfort buffer: $11,195
- Cost of a comfortable retirement annually: $55,973
Indiana
- Total expenditures: $45,387
- 20% comfort buffer: $11,347
- Cost of a comfortable retirement annually: $56,734
Alabama
- Total expenditures: $45,438
- 20% comfort buffer: $11,359
- Cost of a comfortable retirement annually: $56,797
Illinois
- Total expenditures: $45,489
- 20% comfort buffer: $11,372
- Cost of a comfortable retirement annually: $56,861
Tennessee
- Total expenditures: $45,641
- 20% comfort buffer: $11,410
- Cost of a comfortable retirement annually: $57,051
Georgia
- Total expenditures: $45,641
- 20% comfort buffer: $11,410
- Cost of a comfortable retirement annually: $57,051
Michigan
- Total expenditures: $45,692
- 20% comfort buffer: $11,423
- Cost of a comfortable retirement annually: $57,114
Iowa
- Total expenditures: $46,351
- 20% comfort buffer: $11,588
- Cost of a comfortable retirement annually: $57,938
Texas
- Total expenditures: $46,503
- 20% comfort buffer: $11,626
- Cost of a comfortable retirement annually: $58,129
Related: 27 Ugly Truths About Retirement
Ohio
- Total expenditures: $46,706
- 20% comfort buffer: $11,676
- Cost of a comfortable retirement annually: $58,382
West Virginia
- Total expenditures: $46,858
- 20% comfort buffer: $11,714
- Cost of a comfortable retirement annually: $58,572
Nebraska
- Total expenditures: $47,061
- 20% comfort buffer: $11,765
- Cost of a comfortable retirement annually: $58,826
Louisiana
- Total expenditures: $47,416
- 20% comfort buffer: $11,854
- Cost of a comfortable retirement annually: $59,270
Kentucky
- Total expenditures: $47,771
- 20% comfort buffer: $11,943
- Cost of a comfortable retirement annually: $59,713
Idaho
- Total expenditures: $47,821
- 20% comfort buffer: $11,955
- Cost of a comfortable retirement annually: $59,777
Wyoming
- Total expenditures: $47,923
- 20% comfort buffer: $11,981
- Cost of a comfortable retirement annually: $59,904
North Carolina
- Total expenditures: $48,430
- 20% comfort buffer: $12,107
- Cost of a comfortable retirement annually: $60,537
South Carolina
- Total expenditures: $48,430
- 20% comfort buffer: $12,107
- Cost of a comfortable retirement annually: $60,537
Wisconsin
- Total expenditures: $48,531
- 20% comfort buffer: $12,133
- Cost of a comfortable retirement annually: $60,664
North Dakota
- Total expenditures: $48,937
- 20% comfort buffer: $12,234
- Cost of a comfortable retirement annually: $61,171
Utah
- Total expenditures: $49,140
- 20% comfort buffer: $12,285
- Cost of a comfortable retirement annually: $61,425
Florida
- Total expenditures: $50,306
- 20% comfort buffer: $12,577
- Cost of a comfortable retirement annually: $62,883
South Dakota
- Total expenditures: $50,560
- 20% comfort buffer: $12,640
- Cost of a comfortable retirement annually: $63,200
Arizona
- Total expenditures: $50,763
- 20% comfort buffer: $12,691
- Cost of a comfortable retirement annually: $63,453
Minnesota
- Total expenditures: $51,321
- 20% comfort buffer: $12,830
- Cost of a comfortable retirement annually: $64,151
Virginia
- Total expenditures: $51,422
- 20% comfort buffer: $12,855
- Cost of a comfortable retirement annually: $64,277
Colorado
- Total expenditures: $52,335
- 20% comfort buffer: $13,084
- Cost of a comfortable retirement annually: $65,418
Pennsylvania
- Total expenditures: $52,335
- 20% comfort buffer: $13,084
- Cost of a comfortable retirement annually: $65,418
Take Caution: 14 Key Signs You Will Run Out of Money in Retirement
Delaware
- Total expenditures: $54,617
- 20% comfort buffer: $13,654
- Cost of a comfortable retirement annually: $68,271
New Hampshire
- Total expenditures: $54,769
- 20% comfort buffer: $13,692
- Cost of a comfortable retirement annually: $68,461
Montana
- Total expenditures: $54,870
- 20% comfort buffer: $13,718
- Cost of a comfortable retirement annually: $68,588
Nevada
- Total expenditures: $55,175
- 20% comfort buffer: $13,794
- Cost of a comfortable retirement annually: $68,968
Washington
- Total expenditures: $56,899
- 20% comfort buffer: $14,225
- Cost of a comfortable retirement annually: $71,124
Maine
- Total expenditures: $58,420
- 20% comfort buffer: $14,605
- Cost of a comfortable retirement annually: $73,025
Vermont
- Total expenditures: $59,181
- 20% comfort buffer: $14,795
- Cost of a comfortable retirement annually: $73,976
Rhode Island
- Total expenditures: $60,144
- 20% comfort buffer: $15,036
- Cost of a comfortable retirement annually: $75,181
New Jersey
- Total expenditures: $62,071
- 20% comfort buffer: $15,518
- Cost of a comfortable retirement annually: $77,589
Connecticut
- Total expenditures: $62,984
- 20% comfort buffer: $15,746
- Cost of a comfortable retirement annually: $78,730
Maryland
- Total expenditures: $64,911
- 20% comfort buffer: $16,228
- Cost of a comfortable retirement annually: $81,139
Alaska
- Total expenditures: $65,114
- 20% comfort buffer: $16,279
- Cost of a comfortable retirement annually: $81,393
Stay Close to Home: The Most Affordable Places To Retire Near You
Massachusetts
- Total expenditures: $65,773
- 20% comfort buffer: $16,443
- Cost of a comfortable retirement annually: $82,217
Oregon
- Total expenditures: $68,106
- 20% comfort buffer: $17,027
- Cost of a comfortable retirement annually: $85,133
California
- Total expenditures: $72,366
- 20% comfort buffer: $18,092
- Cost of a comfortable retirement annually: $90,458
New York
- Total expenditures: $79,060
- 20% comfort buffer: $19,765
- Cost of a comfortable retirement annually: $98,825
District of Columbia
- Total expenditures: $81,494
- 20% comfort buffer: $20,374
- Cost of a comfortable retirement annually: $101,868
Hawaii
- Total expenditures: $100,207
- 20% comfort buffer: $25,052
- Cost of a comfortable retirement annually: $125,259
More From GOBankingRates
- 24 Ways To Make This Week’s Paycheck Go Further
- Here’s How Much Cash You Need Stashed If an Emergency Happens
- 100 Ways To Make Money Without a 9-to-5
- 21 Smartest Ways To Invest Your Money Right Now
Methodology: GOBankingRates analyzed the following expenditures of Americans ages 65 and older, based on the following data sourced from the Bureau of Labor Statistics’ most recent Consumer Expenditure Survey release (July 2018 through June 2019): (1) annual spending on groceries, defined as “food at home”; (2) annual spending on housing, defined as “shelter”; (3) annual spending on transportation, defined as”gasoline, other fuels, and motor oil” and “other vehicle expenses”; (4) annual spending on healthcare; (5) annual spending on utilities, defined as “utilities, fuels, and public services”; and (6) overall average annual expenditures. Spending estimates were adjusted to the state level by multiplying each cost category by its corresponding cost of living index score in each state, sourced from the Missouri Economic Research and Information Center’s 2020 Q1 cost of living index data. After calculating total consumption expenditures, an additional (7) savings buffer was calculated by assuming that total expenditures consume 80% of one’s budget (50% for necessities and 30% for discretionary spending), with 20% left over for savings. GOBankingRates then combined factors (6) and (7) and factored it out by 20 (assuming 20 years of retirement) to give (8) the retirement savings needed to live comfortably. All data was collected on and up to date as of June 29, 2020.
About the Author
John Csiszar
After earning a B.A. in English with a Specialization in Business from UCLA, John Csiszar worked in the financial services industry as a registered representative for 18 years. Along the way, Csiszar earned both Certified Financial Planner and Registered Investment Adviser designations, in addition to being licensed as a life agent, while working for both a major Wall Street wirehouse and for his own investment advisory firm. During his time as an advisor, Csiszar managed over $100 million in client assets while providing individualized investment plans for hundreds of clients.
View All
How much do you need to retire comfortably? It’s a question in the mind of every American saving for retirement. Unfortunately, there’s not a one-size-fits-all answer. There are several rules of thumb to help you figure out how much to save to retire. But the exact dollar amount you need will depend on a variety of factors — especially where you plan to live in retirement.
That’s because the cost of living varies from state to state. In some places, you can get by on even a small nest egg, while in others, even $2 million won’t be enough. Your age at retirement also plays a factor.
To pinpoint the average retirement income you would need to live comfortably throughout the U.S., GOBankingRates looked at five factors in all 50 states and the District of Columbia: an individual’s spending on groceries, healthcare, housing, utilities and transportation. Then, the annual retirement income needed to cover these living expenses was calculated, with an additional 20% to account for the “comfortable” aspect of retirement. The states are ranked from least to most expensive.
It should be noted that the suggested annual savings don’t include Social Security payouts, potential pension income or interest earned on savings.
Find out exactly how much you’ll need to retire comfortably in your state.
Last updated: July 10, 2020
1. Mississippi
- Total expenditures: $42,953
- 20% comfort buffer: $10,738
- Cost of a comfortable retirement annually: $53,691
2. Kansas
- Total expenditures: $43,866
- 20% comfort buffer: $10,966
- Cost of a comfortable retirement annually: $54,832
3. Oklahoma
- Total expenditures: $43,967
- 20% comfort buffer: $10,992
- Cost of a comfortable retirement annually: $54,959
4. New Mexico
- Total expenditures: $44,221
- 20% comfort buffer: $11,055
- Cost of a comfortable retirement annually: $55,276
Read: 50 Things Every 50-Something Should Know About Retirement
5. Arkansas
- Total expenditures: $44,728
- 20% comfort buffer: $11,182
- Cost of a comfortable retirement annually: $55,910
6. Missouri
- Total expenditures: $44,779
- 20% comfort buffer: $11,195
- Cost of a comfortable retirement annually: $55,973
7. Indiana
- Total expenditures: $45,387
- 20% comfort buffer: $11,347
- Cost of a comfortable retirement annually: $56,734
8. Alabama
- Total expenditures: $45,438
- 20% comfort buffer: $11,359
- Cost of a comfortable retirement annually: $56,797
9. Illinois
- Total expenditures: $45,489
- 20% comfort buffer: $11,372
- Cost of a comfortable retirement annually: $56,861
10. Tennessee
- Total expenditures: $45,641
- 20% comfort buffer: $11,410
- Cost of a comfortable retirement annually: $57,051
11. Georgia
- Total expenditures: $45,641
- 20% comfort buffer: $11,410
- Cost of a comfortable retirement annually: $57,051
12. Michigan
- Total expenditures: $45,692
- 20% comfort buffer: $11,423
- Cost of a comfortable retirement annually: $57,114
13. Iowa
- Total expenditures: $46,351
- 20% comfort buffer: $11,588
- Cost of a comfortable retirement annually: $57,938
14. Texas
- Total expenditures: $46,503
- 20% comfort buffer: $11,626
- Cost of a comfortable retirement annually: $58,129
Related: 27 Ugly Truths About Retirement
15. Ohio
- Total expenditures: $46,706
- 20% comfort buffer: $11,676
- Cost of a comfortable retirement annually: $58,382
16. West Virginia
- Total expenditures: $46,858
- 20% comfort buffer: $11,714
- Cost of a comfortable retirement annually: $58,572
17. Nebraska
- Total expenditures: $47,061
- 20% comfort buffer: $11,765
- Cost of a comfortable retirement annually: $58,826
18. Louisiana
- Total expenditures: $47,416
- 20% comfort buffer: $11,854
- Cost of a comfortable retirement annually: $59,270
19. Kentucky
- Total expenditures: $47,771
- 20% comfort buffer: $11,943
- Cost of a comfortable retirement annually: $59,713
20. Idaho
- Total expenditures: $47,821
- 20% comfort buffer: $11,955
- Cost of a comfortable retirement annually: $59,777
21. Wyoming
- Total expenditures: $47,923
- 20% comfort buffer: $11,981
- Cost of a comfortable retirement annually: $59,904
22. North Carolina
- Total expenditures: $48,430
- 20% comfort buffer: $12,107
- Cost of a comfortable retirement annually: $60,537
23. South Carolina
- Total expenditures: $48,430
- 20% comfort buffer: $12,107
- Cost of a comfortable retirement annually: $60,537
24. Wisconsin
- Total expenditures: $48,531
- 20% comfort buffer: $12,133
- Cost of a comfortable retirement annually: $60,664
25. North Dakota
- Total expenditures: $48,937
- 20% comfort buffer: $12,234
- Cost of a comfortable retirement annually: $61,171
26. Utah
- Total expenditures: $49,140
- 20% comfort buffer: $12,285
- Cost of a comfortable retirement annually: $61,425
27. Florida
- Total expenditures: $50,306
- 20% comfort buffer: $12,577
- Cost of a comfortable retirement annually: $62,883
28. South Dakota
- Total expenditures: $50,560
- 20% comfort buffer: $12,640
- Cost of a comfortable retirement annually: $63,200
29. Arizona
- Total expenditures: $50,763
- 20% comfort buffer: $12,691
- Cost of a comfortable retirement annually: $63,453
30. Minnesota
- Total expenditures: $51,321
- 20% comfort buffer: $12,830
- Cost of a comfortable retirement annually: $64,151
31. Virginia
- Total expenditures: $51,422
- 20% comfort buffer: $12,855
- Cost of a comfortable retirement annually: $64,277
32. Colorado
- Total expenditures: $52,335
- 20% comfort buffer: $13,084
- Cost of a comfortable retirement annually: $65,418
33. Pennsylvania
- Total expenditures: $52,335
- 20% comfort buffer: $13,084
- Cost of a comfortable retirement annually: $65,418
Take Caution: 14 Key Signs You Will Run Out of Money in Retirement
34. Delaware
- Total expenditures: $54,617
- 20% comfort buffer: $13,654
- Cost of a comfortable retirement annually: $68,271
35. New Hampshire
- Total expenditures: $54,769
- 20% comfort buffer: $13,692
- Cost of a comfortable retirement annually: $68,461
36. Montana
- Total expenditures: $54,870
- 20% comfort buffer: $13,718
- Cost of a comfortable retirement annually: $68,588
37. Nevada
- Total expenditures: $55,175
- 20% comfort buffer: $13,794
- Cost of a comfortable retirement annually: $68,968
38. Washington
- Total expenditures: $56,899
- 20% comfort buffer: $14,225
- Cost of a comfortable retirement annually: $71,124
39. Maine
- Total expenditures: $58,420
- 20% comfort buffer: $14,605
- Cost of a comfortable retirement annually: $73,025
40. Vermont
- Total expenditures: $59,181
- 20% comfort buffer: $14,795
- Cost of a comfortable retirement annually: $73,976
41. Rhode Island
- Total expenditures: $60,144
- 20% comfort buffer: $15,036
- Cost of a comfortable retirement annually: $75,181
42. New Jersey
- Total expenditures: $62,071
- 20% comfort buffer: $15,518
- Cost of a comfortable retirement annually: $77,589
43. Connecticut
- Total expenditures: $62,984
- 20% comfort buffer: $15,746
- Cost of a comfortable retirement annually: $78,730
44. Maryland
- Total expenditures: $64,911
- 20% comfort buffer: $16,228
- Cost of a comfortable retirement annually: $81,139
45. Alaska
- Total expenditures: $65,114
- 20% comfort buffer: $16,279
- Cost of a comfortable retirement annually: $81,393
Stay Close to Home: The Most Affordable Places To Retire Near You
46. Massachusetts
- Total expenditures: $65,773
- 20% comfort buffer: $16,443
- Cost of a comfortable retirement annually: $82,217
47. Oregon
- Total expenditures: $68,106
- 20% comfort buffer: $17,027
- Cost of a comfortable retirement annually: $85,133
48. California
- Total expenditures: $72,366
- 20% comfort buffer: $18,092
- Cost of a comfortable retirement annually: $90,458
49. New York
- Total expenditures: $79,060
- 20% comfort buffer: $19,765
- Cost of a comfortable retirement annually: $98,825
50. District of Columbia
- Total expenditures: $81,494
- 20% comfort buffer: $20,374
- Cost of a comfortable retirement annually: $101,868
51. Hawaii
- Total expenditures: $100,207
- 20% comfort buffer: $25,052
- Cost of a comfortable retirement annually: $125,259
More From GOBankingRates
- 24 Ways To Make This Week’s Paycheck Go Further
- Here’s How Much Cash You Need Stashed If an Emergency Happens
- 100 Ways To Make Money Without a 9-to-5
- 21 Smartest Ways To Invest Your Money Right Now
Methodology: GOBankingRates analyzed the following expenditures of Americans ages 65 and older, based on the following data sourced from the Bureau of Labor Statistics’ most recent Consumer Expenditure Survey release (July 2018 through June 2019): (1) annual spending on groceries, defined as “food at home”; (2) annual spending on housing, defined as “shelter”; (3) annual spending on transportation, defined as”gasoline, other fuels, and motor oil” and “other vehicle expenses”; (4) annual spending on healthcare; (5) annual spending on utilities, defined as “utilities, fuels, and public services”; and (6) overall average annual expenditures. Spending estimates were adjusted to the state level by multiplying each cost category by its corresponding cost of living index score in each state, sourced from the Missouri Economic Research and Information Center’s 2020 Q1 cost of living index data. After calculating total consumption expenditures, an additional (7) savings buffer was calculated by assuming that total expenditures consume 80% of one’s budget (50% for necessities and 30% for discretionary spending), with 20% left over for savings. GOBankingRates then combined factors (6) and (7) and factored it out by 20 (assuming 20 years of retirement) to give (8) the retirement savings needed to live comfortably. All data was collected on and up to date as of June 29, 2020.
About the Author
John Csiszar
After earning a B.A. in English with a Specialization in Business from UCLA, John Csiszar worked in the financial services industry as a registered representative for 18 years. Along the way, Csiszar earned both Certified Financial Planner and Registered Investment Adviser designations, in addition to being licensed as a life agent, while working for both a major Wall Street wirehouse and for his own investment advisory firm. During his time as an advisor, Csiszar managed over $100 million in client assets while providing individualized investment plans for hundreds of clients.
