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 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: Nov. 6, 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

Find Out: 25 Ways To Maximize Your Retirement Benefits

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

See: How Long $500K Will Last in Retirement in Each State

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

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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.

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