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.
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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.
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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: $39,633
- 20% comfort buffer: $9,908
- Cost of a comfortable retirement annually: $49,542
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Kansas
- Total expenditures: $41,441
- 20% comfort buffer: $10,360
- Cost of a comfortable retirement annually: $51,802
Oklahoma
- Total expenditures: $42,155
- 20% comfort buffer: $10,539
- Cost of a comfortable retirement annually: $52,694
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Alabama
- Total expenditures: $42,250
- 20% comfort buffer: $10,563
- Cost of a comfortable retirement annually: $52,813
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Arkansas
- Total expenditures: $42,393
- 20% comfort buffer: $10,598
- Cost of a comfortable retirement annually: $52,991
Georgia
- Total expenditures: $42,536
- 20% comfort buffer: $10,634
- Cost of a comfortable retirement annually: $53,170
Tennessee
- Total expenditures: $42,631
- 20% comfort buffer: $10,658
- Cost of a comfortable retirement annually: $53,288
Missouri
- Total expenditures: $42,869
- 20% comfort buffer: $10,717
- Cost of a comfortable retirement annually: $53,586
New Mexico
- Total expenditures: $43,202
- 20% comfort buffer: $10,800
- Cost of a comfortable retirement annually: $54,002
Indiana
- Total expenditures: $43,297
- 20% comfort buffer: $10,824
- Cost of a comfortable retirement annually: $54,121
Iowa
- Total expenditures: $43,344
- 20% comfort buffer: $10,836
- Cost of a comfortable retirement annually: $54,181
Michigan
- Total expenditures: $43,487
- 20% comfort buffer: $10,872
- Cost of a comfortable retirement annually: $54,359
Ohio
- Total expenditures: $43,773
- 20% comfort buffer: $10,943
- Cost of a comfortable retirement annually: $54,716
Texas
- Total expenditures: $44,058
- 20% comfort buffer: $11,015
- Cost of a comfortable retirement annually: $55,073
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West Virginia
- Total expenditures: $44,201
- 20% comfort buffer: $11,050
- Cost of a comfortable retirement annually: $55,251
Louisiana
- Total expenditures: $44,439
- 20% comfort buffer: $11,110
- Cost of a comfortable retirement annually: $55,548
Kentucky
- Total expenditures: $44,677
- 20% comfort buffer: $11,169
- Cost of a comfortable retirement annually: $55,846
Nebraska
- Total expenditures: $44,677
- 20% comfort buffer: $11,169
- Cost of a comfortable retirement annually: $55,846
Idaho
- Total expenditures: $45,105
- 20% comfort buffer: $11,276
- Cost of a comfortable retirement annually: $56,381
Illinois
- Total expenditures: $45,390
- 20% comfort buffer: $11,348
- Cost of a comfortable retirement annually: $56,738
Wyoming
- Total expenditures: $45,438
- 20% comfort buffer: $11,359
- Cost of a comfortable retirement annually: $56,797
South Carolina
- Total expenditures: $45,866
- 20% comfort buffer: $11,467
- Cost of a comfortable retirement annually: $57,333
North Carolina
- Total expenditures: $45,914
- 20% comfort buffer: $11,478
- Cost of a comfortable retirement annually: $57,392
Wisconsin
- Total expenditures: $46,152
- 20% comfort buffer: $11,538
- Cost of a comfortable retirement annually: $57,690
North Dakota
- Total expenditures: $46,437
- 20% comfort buffer: $11,609
- Cost of a comfortable retirement annually: $58,046
Utah
- Total expenditures: $46,913
- 20% comfort buffer: $11,728
- Cost of a comfortable retirement annually: $58,641
South Dakota
- Total expenditures: $47,103
- 20% comfort buffer: $11,776
- Cost of a comfortable retirement annually: $58,879
Montana
- Total expenditures: $47,722
- 20% comfort buffer: $11,930
- Cost of a comfortable retirement annually: $59,652
Florida
- Total expenditures: $48,055
- 20% comfort buffer: $12,014
- Cost of a comfortable retirement annually: $60,068
Minnesota
- Total expenditures: $48,150
- 20% comfort buffer: $12,037
- Cost of a comfortable retirement annually: $60,187
Virginia
- Total expenditures: $48,198
- 20% comfort buffer: $12,049
- Cost of a comfortable retirement annually: $60,247
Arizona
- Total expenditures: $48,721
- 20% comfort buffer: $12,180
- Cost of a comfortable retirement annually: $60,901
Pennsylvania
- Total expenditures: $49,006
- 20% comfort buffer: $12,252
- Cost of a comfortable retirement annually: $61,258
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Colorado
- Total expenditures: $50,148
- 20% comfort buffer: $12,537
- Cost of a comfortable retirement annually: $62,685
Delaware
- Total expenditures: $51,385
- 20% comfort buffer: $12,846
- Cost of a comfortable retirement annually: $64,232
Nevada
- Total expenditures: $51,433
- 20% comfort buffer: $12,858
- Cost of a comfortable retirement annually: $64,291
New Hampshire
- Total expenditures: $52,099
- 20% comfort buffer: $13,025
- Cost of a comfortable retirement annually: $65,124
Washington
- Total expenditures: $53,622
- 20% comfort buffer: $13,405
- Cost of a comfortable retirement annually: $67,027
New Jersey
- Total expenditures: $54,954
- 20% comfort buffer: $13,738
- Cost of a comfortable retirement annually: $68,692
Maine
- Total expenditures: $55,430
- 20% comfort buffer: $13,857
- Cost of a comfortable retirement annually: $69,287
Vermont
- Total expenditures: $55,572
- 20% comfort buffer: $13,893
- Cost of a comfortable retirement annually: $69,465
Rhode Island
- Total expenditures: $56,714
- 20% comfort buffer: $14,179
- Cost of a comfortable retirement annually: $70,893
Connecticut
- Total expenditures: $58,189
- 20% comfort buffer: $14,547
- Cost of a comfortable retirement annually: $72,736
Maryland
- Total expenditures: $59,712
- 20% comfort buffer: $14,928
- Cost of a comfortable retirement annually: $74,640
Alaska
- Total expenditures: $60,092
- 20% comfort buffer: $15,023
- Cost of a comfortable retirement annually: $75,115
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Oregon
- Total expenditures: $62,757
- 20% comfort buffer: $15,689
- Cost of a comfortable retirement annually: $78,446
Massachusetts
- Total expenditures: $63,042
- 20% comfort buffer: $15,761
- Cost of a comfortable retirement annually: $78,803
California
- Total expenditures: $66,087
- 20% comfort buffer: $16,522
- Cost of a comfortable retirement annually: $82,609
New York
- Total expenditures: $69,418
- 20% comfort buffer: $17,354
- Cost of a comfortable retirement annually: $86,772
District of Columbia
- Total expenditures: $74,461
- 20% comfort buffer: $18,615
- Cost of a comfortable retirement annually: $93,076
Hawaii
- Total expenditures: $74,461
- 20% comfort buffer: $18,615
- Cost of a comfortable retirement annually: $93,076
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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 2020: (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 2021 Q2 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 Nov. 3, 2021.