What a Comfortable Retirement Will Cost You in Each State

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What a Comfortable Retirement Will Cost You in Each State

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 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.
Mississippi
- Total expenditures: $44,059
- 20% comfort buffer: $11,015
- Cost of a comfortable retirement annually: $55,074
Oklahoma
- Total expenditures: $45,206
- 20% comfort buffer: $11,302
- Cost of a comfortable retirement annually: $56,508
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Alabama
- Total expenditures: $45,415
- 20% comfort buffer: $11,354
- Cost of a comfortable retirement annually: $56,769
Kansas
- Total expenditures: $45,519
- 20% comfort buffer: $11,380
- Cost of a comfortable retirement annually: $56,899
Iowa
- Total expenditures: $45,988
- 20% comfort buffer: $11,497
- Cost of a comfortable retirement annually: $57,485
Georgia
- Total expenditures: $46,353
- 20% comfort buffer: $11,588
- Cost of a comfortable retirement annually: $57,942
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Ohio
- Total expenditures: $46,614
- 20% comfort buffer: $11,654
- Cost of a comfortable retirement annually: $58,268
West Virginia
- Total expenditures: $46,823
- 20% comfort buffer: $11,706
- Cost of a comfortable retirement annually: $58,528
Missouri
- Total expenditures: $46,979
- 20% comfort buffer: $11,745
- Cost of a comfortable retirement annually: $58,724
Indiana
- Total expenditures: $47,031
- 20% comfort buffer: $11,758
- Cost of a comfortable retirement annually: $58,789
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Tennessee
- Total expenditures: $47,083
- 20% comfort buffer: $11,771
- Cost of a comfortable retirement annually: $58,854
Arkansas
- Total expenditures: $47,083
- 20% comfort buffer: $11,771
- Cost of a comfortable retirement annually: $58,854
Nebraska
- Total expenditures: $47,500
- 20% comfort buffer: $11,875
- Cost of a comfortable retirement annually: $59,376
Wyoming
- Total expenditures: $47,792
- 20% comfort buffer: $11,948
- Cost of a comfortable retirement annually: $59,741
Michigan
- Total expenditures: $47,813
- 20% comfort buffer: $11,953
- Cost of a comfortable retirement annually: $59,767
Illinois
- Total expenditures: $47,918
- 20% comfort buffer: $11,979
- Cost of a comfortable retirement annually: $59,897
Texas
- Total expenditures: $48,283
- 20% comfort buffer: $12,071
- Cost of a comfortable retirement annually: $60,353
Kentucky
- Total expenditures: $48,387
- 20% comfort buffer: $12,097
- Cost of a comfortable retirement annually: $60,484
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Louisiana
- Total expenditures: $48,752
- 20% comfort buffer: $12,188
- Cost of a comfortable retirement annually: $60,940
New Mexico
- Total expenditures: $48,908
- 20% comfort buffer: $12,227
- Cost of a comfortable retirement annually: $61,135
Wisconsin
- Total expenditures: $48,960
- 20% comfort buffer: $12,240
- Cost of a comfortable retirement annually: $61,200
Minnesota
- Total expenditures: $49,586
- 20% comfort buffer: $12,397
- Cost of a comfortable retirement annually: $61,983
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South Dakota
- Total expenditures: $50,108
- 20% comfort buffer: $12,527
- Cost of a comfortable retirement annually: $62,634
South Carolina
- Total expenditures: $50,212
- 20% comfort buffer: $12,553
- Cost of a comfortable retirement annually: $62,765
North Carolina
- Total expenditures: $50,525
- 20% comfort buffer: $12,631
- Cost of a comfortable retirement annually: $63,156
North Dakota
- Total expenditures: $50,785
- 20% comfort buffer: $12,696
- Cost of a comfortable retirement annually: $63,482
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Pennsylvania
- Total expenditures: $51,202
- 20% comfort buffer: $12,801
- Cost of a comfortable retirement annually: $64,003
Idaho
- Total expenditures: $51,567
- 20% comfort buffer: $12,892
- Cost of a comfortable retirement annually: $64,459
Nevada
- Total expenditures: $53,132
- 20% comfort buffer: $13,283
- Cost of a comfortable retirement annually: $66,415
Utah
- Total expenditures: $53,184
- 20% comfort buffer: $13,296
- Cost of a comfortable retirement annually: $66,480
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Virginia
- Total expenditures: $53,236
- 20% comfort buffer: $13,309
- Cost of a comfortable retirement annually: $66,545
Florida
- Total expenditures: $54,487
- 20% comfort buffer: $13,622
- Cost of a comfortable retirement annually: $68,109
Colorado
- Total expenditures: $54,852
- 20% comfort buffer: $13,713
- Cost of a comfortable retirement annually: $68,565
Montana
- Total expenditures: $54,904
- 20% comfort buffer: $13,726
- Cost of a comfortable retirement annually: $68,631
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Delaware
- Total expenditures: $54,957
- 20% comfort buffer: $13,739
- Cost of a comfortable retirement annually: $68,696
Arizona
- Total expenditures: $56,312
- 20% comfort buffer: $14,078
- Cost of a comfortable retirement annually: $70,390
Rhode Island
- Total expenditures: $57,981
- 20% comfort buffer: $14,495
- Cost of a comfortable retirement annually: $72,476
New Jersey
- Total expenditures: $59,441
- 20% comfort buffer: $14,860
- Cost of a comfortable retirement annually: $74,301
Washington
- Total expenditures: $59,441
- 20% comfort buffer: $14,860
- Cost of a comfortable retirement annually: $74,301
Maine
- Total expenditures: $59,701
- 20% comfort buffer: $14,925
- Cost of a comfortable retirement annually: $74,627
New Hampshire
- Total expenditures: $59,806
- 20% comfort buffer: $14,951
- Cost of a comfortable retirement annually: $74,757
Connecticut
- Total expenditures: $60,171
- 20% comfort buffer: $15,043
- Cost of a comfortable retirement annually: $75,213
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Vermont
- Total expenditures: $60,692
- 20% comfort buffer: $15,173
- Cost of a comfortable retirement annually: $75,865
Oregon
- Total expenditures: $63,716
- 20% comfort buffer: $15,929
- Cost of a comfortable retirement annually: $79,645
Maryland
- Total expenditures: $64,707
- 20% comfort buffer: $16,177
- Cost of a comfortable retirement annually: $80,884
Alaska
- Total expenditures: $65,437
- 20% comfort buffer: $16,359
- Cost of a comfortable retirement annually: $81,796
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New York
- Total expenditures: $70,755
- 20% comfort buffer: $17,689
- Cost of a comfortable retirement annually: $88,444
California
- Total expenditures: $72,320
- 20% comfort buffer: $18,080
- Cost of a comfortable retirement annually: $90,399
Massachusetts
- Total expenditures: $78,159
- 20% comfort buffer: $19,540
- Cost of a comfortable retirement annually: $97,699
District of Columbia
- Total expenditures: $79,984
- 20% comfort buffer: $19,996
- Cost of a comfortable retirement annually: $99,980
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Hawaii
- Total expenditures: $96,982
- 20% comfort buffer: $24,246
- Cost of a comfortable retirement annually: $121,228
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John Csiszar contributed to the reporting for this article.
Methodology: GOBankingRates analyzed the following expenditures of Americans aged 65 and older, based on data sourced from the Bureau of Labor Statistics’ (BLS) most recent Consumer Expenditure Survey release for the full year of 2021: (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 2022 Q3 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 ones 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) retirement savings needed to live comfortably. All data was collected on and up to date as of November 9, 2022.
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About the Author
Jordan Rosenfeld
Jordan Rosenfeld is a freelance writer and author of nine books. She holds a B.A. from Sonoma State University and an MFA from Bennington College. Her articles and essays about finances and other topics has appeared in a wide range of publications and clients, including The Atlantic, The Billfold, Good Magazine, GoBanking Rates, Daily Worth, Quartz, Medical Economics, The New York Times, Ozy, Paypal, The Washington Post and for numerous business clients. As someone who had to learn many of her lessons about money the hard way, she enjoys writing about personal finance to empower and educate people on how to make the most of what they have and live a better quality of life.