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.

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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.

• Total expenditures: $44,059
• 20% comfort buffer: $11,015
• Cost of a comfortable retirement annually: $55,074

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• Total expenditures: $45,206
• 20% comfort buffer: $11,302
• Cost of a comfortable retirement annually: $56,508

• Total expenditures: $45,415
• 20% comfort buffer: $11,354
• Cost of a comfortable retirement annually: $56,769

• Total expenditures: $45,519
• 20% comfort buffer: $11,380
• Cost of a comfortable retirement annually: $56,899

• Total expenditures: $45,988
• 20% comfort buffer: $11,497
• Cost of a comfortable retirement annually: $57,485

• Total expenditures: $46,353
• 20% comfort buffer: $11,588
• Cost of a comfortable retirement annually: $57,942

• Total expenditures: $46,614
• 20% comfort buffer: $11,654
• Cost of a comfortable retirement annually: $58,268

• Total expenditures: $46,823
• 20% comfort buffer: $11,706
• Cost of a comfortable retirement annually: $58,528

• Total expenditures: $46,979
• 20% comfort buffer: $11,745
• Cost of a comfortable retirement annually: $58,724

• Total expenditures: $47,031
• 20% comfort buffer: $11,758
• Cost of a comfortable retirement annually: $58,789

• Total expenditures: $47,083
• 20% comfort buffer: $11,771
• Cost of a comfortable retirement annually: $58,854

• Total expenditures: $47,083
• 20% comfort buffer: $11,771
• Cost of a comfortable retirement annually: $58,854

• Total expenditures: $47,500
• 20% comfort buffer: $11,875
• Cost of a comfortable retirement annually: $59,376

• Total expenditures: $47,792
• 20% comfort buffer: $11,948
• Cost of a comfortable retirement annually: $59,741

• Total expenditures: $47,813
• 20% comfort buffer: $11,953
• Cost of a comfortable retirement annually: $59,767

• Total expenditures: $47,918
• 20% comfort buffer: $11,979
• Cost of a comfortable retirement annually: $59,897

• Total expenditures: $48,283
• 20% comfort buffer: $12,071
• Cost of a comfortable retirement annually: $60,353

• Total expenditures: $48,387
• 20% comfort buffer: $12,097
• Cost of a comfortable retirement annually: $60,484

• Total expenditures: $48,752
• 20% comfort buffer: $12,188
• Cost of a comfortable retirement annually: $60,940

• Total expenditures: $48,908
• 20% comfort buffer: $12,227
• Cost of a comfortable retirement annually: $61,135

• Total expenditures: $48,960
• 20% comfort buffer: $12,240
• Cost of a comfortable retirement annually: $61,200

• Total expenditures: $49,586
• 20% comfort buffer: $12,397
• Cost of a comfortable retirement annually: $61,983

• Total expenditures: $50,108
• 20% comfort buffer: $12,527
• Cost of a comfortable retirement annually: $62,634

• Total expenditures: $50,212
• 20% comfort buffer: $12,553
• Cost of a comfortable retirement annually: $62,765

• Total expenditures: $50,525
• 20% comfort buffer: $12,631
• Cost of a comfortable retirement annually: $63,156

• Total expenditures: $50,785
• 20% comfort buffer: $12,696
• Cost of a comfortable retirement annually: $63,482

• Total expenditures: $51,202
• 20% comfort buffer: $12,801
• Cost of a comfortable retirement annually: $64,003

• Total expenditures: $51,567
• 20% comfort buffer: $12,892
• Cost of a comfortable retirement annually: $64,459

• Total expenditures: $53,132
• 20% comfort buffer: $13,283
• Cost of a comfortable retirement annually: $66,415

• Total expenditures: $53,184
• 20% comfort buffer: $13,296
• Cost of a comfortable retirement annually: $66,480

• Total expenditures: $53,236
• 20% comfort buffer: $13,309
• Cost of a comfortable retirement annually: $66,545

• Total expenditures: $54,487
• 20% comfort buffer: $13,622
• Cost of a comfortable retirement annually: $68,109

• Total expenditures: $54,852
• 20% comfort buffer: $13,713
• Cost of a comfortable retirement annually: $68,565

• Total expenditures: $54,904
• 20% comfort buffer: $13,726
• Cost of a comfortable retirement annually: $68,631

• Total expenditures: $54,957
• 20% comfort buffer: $13,739
• Cost of a comfortable retirement annually: $68,696

• Total expenditures: $56,312
• 20% comfort buffer: $14,078
• Cost of a comfortable retirement annually: $70,390

• Total expenditures: $57,981
• 20% comfort buffer: $14,495
• Cost of a comfortable retirement annually: $72,476

• Total expenditures: $59,441
• 20% comfort buffer: $14,860
• Cost of a comfortable retirement annually: $74,301

• Total expenditures: $59,441
• 20% comfort buffer: $14,860
• Cost of a comfortable retirement annually: $74,301

• Total expenditures: $59,701
• 20% comfort buffer: $14,925
• Cost of a comfortable retirement annually: $74,627

• Total expenditures: $59,806
• 20% comfort buffer: $14,951
• Cost of a comfortable retirement annually: $74,757

• Total expenditures: $60,171
• 20% comfort buffer: $15,043
• Cost of a comfortable retirement annually: $75,213

• Total expenditures: $60,692
• 20% comfort buffer: $15,173
• Cost of a comfortable retirement annually: $75,865

• Total expenditures: $63,716
• 20% comfort buffer: $15,929
• Cost of a comfortable retirement annually: $79,645

• Total expenditures: $64,707
• 20% comfort buffer: $16,177
• Cost of a comfortable retirement annually: $80,884

• Total expenditures: $65,437
• 20% comfort buffer: $16,359
• Cost of a comfortable retirement annually: $81,796

• Total expenditures: $70,755
• 20% comfort buffer: $17,689
• Cost of a comfortable retirement annually: $88,444

• Total expenditures: $72,320
• 20% comfort buffer: $18,080
• Cost of a comfortable retirement annually: $90,399

• Total expenditures: $78,159
• 20% comfort buffer: $19,540
• Cost of a comfortable retirement annually: $97,699

• Total expenditures: $79,984
• 20% comfort buffer: $19,996
• Cost of a comfortable retirement annually: $99,980

• 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.