GOBankingRates

Here’s Exactly How Much Savings You Need To Retire In Your State

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The average American's lack of savings paints a fairly discouraging picture of retirement. A 2019 GOBankingRates survey found that 64% are expected to retire with less than $10,000 in savings. Many Americans see themselves working past age 65 out of financial necessity, according to the Pew Charitable Trusts, with some people planning to never retire at all.

See: 42 Easy Ways To Save For Retirement

But the amount of money you need to retire depends on where you live, due to state-by-state differences in the cost of living. In some areas of the country, a nest egg of $700,000 may be sizable enough for retirement. In other regions, you have to build up your savings even more to reach at least $1 million in retirement funds.

To find out exactly how much you need saved to retire, GOBankingRates calculated annual expenditures for a retired person in every state after deducting Social Security income, based on data from the Bureau of Labor Statistics and the Missouri Economic Research and Information Center. The study assumed that you would draw down your savings by 4% every year to cover your living expenses, and states were ranked from the smallest nest egg needed to the biggest.

GOBankingRates found that residents of many Southeastern and Southwestern states won't have to put away nearly as much money for retirement, with states like Mississippi and Oklahoma requiring less than $700,000 in savings to retire. However, the Northeastern states aren't so lucky -- they claimed seven spots among the bottom 10 states. To ensure smooth sailing in your golden years, make sure you're using the right tools to save for retirement.

Last updated: Jan. 14, 2021

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1. Mississippi

  • Annual cost of living: $42,976.70
  • Cost of living after using Social Security income: $26,670.86
  • How much you need in savings to retire: $666,772

Take Action: Do These 13 Things To Boost Your Retirement Savings Now

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2. Oklahoma

  • Annual cost of living: $43,790.46
  • Cost of living after using Social Security income: $27,484.62
  • How much you need in savings to retire: $687,116

Check Out: How Long $1 Million in Savings Will Last in Every State

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3. Arkansas

  • Annual cost of living: $44,197.34
  • Cost of living after using Social Security income: $27,891.50
  • How much you need in savings to retire: $697,288
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4. Kansas

  • Annual cost of living: $44,451.64
  • Cost of living after using Social Security income: $28,145.80
  • How much you need in savings to retire: $703,645

Are High-Yield Savings Accounts Worth It? Here’s Everything You Need To Know

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5. Tennessee

  • Annual cost of living: $44,604.22
  • Cost of living after using Social Security income: $28,298.38
  • How much you need in savings to retire: $707,460
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6. New Mexico

  • Annual cost of living: $45,112.82
  • Cost of living after using Social Security income: $28,806.98
  • How much you need in savings to retire: $720,175

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7. Alabama

  • Annual cost of living: $45,265.40
  • Cost of living after using Social Security income: $28,959.56
  • How much you need in savings to retire: $723,989
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8. Missouri

  • Annual cost of living: $45,316.26
  • Cost of living after using Social Security income: $29,010.42
  • How much you need in savings to retire: $725,261
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9. Michigan

  • Annual cost of living: $45,621.42
  • Cost of living after using Social Security income: $29,315.58
  • How much you need in savings to retire: $732,890
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10. Georgia

  • Annual cost of living: $45,824.86
  • Cost of living after using Social Security income: $29,519.02
  • How much you need in savings to retire: $737,976
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11. Indiana

  • Annual cost of living: $46,130.02
  • Cost of living after using Social Security income: $29,824.18
  • How much you need in savings to retire: $745,605
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12. West Virginia

  • Annual cost of living: $46,486.04
  • Cost of living after using Social Security income: $30,180.20
  • How much you need in savings to retire: $754,505
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13. Nebraska

  • Annual cost of living: $46,638.62
  • Cost of living after using Social Security income: $30,332.78
  • How much you need in savings to retire: $758,320
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14. Texas

  • Annual cost of living: $46,791.20
  • Cost of living after using Social Security income: $30,485.36
  • How much you need in savings to retire: $762,134

Learn: What Is a Savings Bond and How Does It Work?

Retire Comfortably
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15. Iowa

  • Annual cost of living: $46,994.64
  • Cost of living after using Social Security income: $30,688.80
  • How much you need in savings to retire: $767,220
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16. Ohio

  • Annual cost of living: $47,198.08
  • Cost of living after using Social Security income: $30,892.24
  • How much you need in savings to retire: $772,306
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17. Louisiana

  • Annual cost of living: $47,248.94
  • Cost of living after using Social Security income: $30,943.10
  • How much you need in savings to retire: $773,578
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18. Kentucky

  • Annual cost of living: $47,299.80
  • Cost of living after using Social Security income: $30,993.96
  • How much you need in savings to retire: $774,849
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19. Idaho

  • Annual cost of living: $48,215.28
  • Cost of living after using Social Security income: $31,909.44
  • How much you need in savings to retire: $797,736
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20. North Carolina

  • Annual cost of living: $48,215.28
  • Cost of living after using Social Security income: $31,909.44
  • How much you need in savings to retire: $797,736
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21. South Carolina

  • Annual cost of living: $48,367.86
  • Cost of living after using Social Security income: $32,062.02
  • How much you need in savings to retire: $801,551
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22. Illinois

  • Annual cost of living: $48,469.58
  • Cost of living after using Social Security income: $32,163.74
  • How much you need in savings to retire: $804,094

Retire Comfortably
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23. Wisconsin

  • Annual cost of living: $48,774.74
  • Cost of living after using Social Security income: $32,468.90
  • How much you need in savings to retire: $811,723
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24. Utah

  • Annual cost of living: $48,927.32
  • Cost of living after using Social Security income: $32,621.48
  • How much you need in savings to retire: $815,537
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25. South Dakota

  • Annual cost of living: $49,079.90
  • Cost of living after using Social Security income: $32,774.06
  • How much you need in savings to retire: $819,352
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26. North Dakota

  • Annual cost of living: $49,130.76
  • Cost of living after using Social Security income: $32,824.92
  • How much you need in savings to retire: $820,623
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27. Florida

  • Annual cost of living: $50,046.24
  • Cost of living after using Social Security income: $33,740.40
  • How much you need in savings to retire: $843,510

Find Out: Where To Get 5% Interest Savings Accounts

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28. Arizona

  • Annual cost of living: $50,809.14
  • Cost of living after using Social Security income: $34,503.30
  • How much you need in savings to retire: $862,583
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29. Minnesota

  • Annual cost of living: $51,165.16
  • Cost of living after using Social Security income: $34,859.32
  • How much you need in savings to retire: $871,483

Retire Comfortably
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30. Pennsylvania

  • Annual cost of living: $51,266.88
  • Cost of living after using Social Security income: $34,961.04
  • How much you need in savings to retire: $874,026
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31. Virginia

  • Annual cost of living: $51,724.62
  • Cost of living after using Social Security income: $35,418.78
  • How much you need in savings to retire: $885,470

What's the Difference? Money Market Accounts vs. Savings Accounts

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32. Wyoming

  • Annual cost of living: $51,877.20
  • Cost of living after using Social Security income: $35,571.36
  • How much you need in savings to retire: $889,284
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33. Nevada

  • Annual cost of living: $52,284.08
  • Cost of living after using Social Security income: $35,978.24
  • How much you need in savings to retire: $899,456
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34. Colorado

  • Annual cost of living: $52,640.10
  • Cost of living after using Social Security income: $36,334.26
  • How much you need in savings to retire: $908,357
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35. New Hampshire

  • Annual cost of living: $54,572.78
  • Cost of living after using Social Security income: $38,266.94
  • How much you need in savings to retire: $956,674
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36. Delaware

  • Annual cost of living: $54,725.36
  • Cost of living after using Social Security income: $38,419.52
  • How much you need in savings to retire: $960,488

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37. Montana

  • Annual cost of living: $54,827.08
  • Cost of living after using Social Security income: $38,521.24
  • How much you need in savings to retire: $963,031
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38. Washington

  • Annual cost of living: $56,454.60
  • Cost of living after using Social Security income: $40,148.76
  • How much you need in savings to retire: $1,003,719
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39. Vermont

  • Annual cost of living: $58,743.30
  • Cost of living after using Social Security income: $42,437.46
  • How much you need in savings to retire: $1,060,937

Don't Miss: Best Online Savings Accounts for Earning High-Yield Profits

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40. Maine

  • Annual cost of living: $59,658.78
  • Cost of living after using Social Security income: $43,352.94
  • How much you need in savings to retire: $1,083,824
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41. Rhode Island

  • Annual cost of living: $60,269.10
  • Cost of living after using Social Security income: $43,963.26
  • How much you need in savings to retire: $1,099,082
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42. New Jersey

  • Annual cost of living: $63,269.84
  • Cost of living after using Social Security income: $46,964.00
  • How much you need in savings to retire: $1,174,100
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43. Connecticut

  • Annual cost of living: $63,676.72
  • Cost of living after using Social Security income: $47,370.88
  • How much you need in savings to retire: $1,184,272
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44. Alaska

  • Annual cost of living: $64,846.50
  • Cost of living after using Social Security income: $48,540.66
  • How much you need in savings to retire: $1,213,517

See: The Best Savings Accounts of 2020

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45. Maryland

  • Annual cost of living: $65,863.70
  • Cost of living after using Social Security income: $49,557.86
  • How much you need in savings to retire: $1,238,947
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46. Massachusetts

  • Annual cost of living: $66,270.58
  • Cost of living after using Social Security income: $49,964.74
  • How much you need in savings to retire: $1,249,119
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47. New York

  • Annual cost of living: $68,661.00
  • Cost of living after using Social Security income: $52,355.16
  • How much you need in savings to retire: $1,308,879
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48. Oregon

  • Annual cost of living: $69,678.20
  • Cost of living after using Social Security income: $53,372.36
  • How much you need in savings to retire: $1,334,309
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49. California

  • Annual cost of living: $71,102.28
  • Cost of living after using Social Security income: $54,796.44
  • How much you need in savings to retire: $1,369,911
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50. Hawaii

  • Annual cost of living: $102,381.18
  • Cost of living after using Social Security income: $86,075.34
  • How much you need in savings to retire: $2,151,884

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Methodology: To determine exactly how much you need to retire in your state, GOBankingRates found the annual cost of expenditures for a retired person in each state by multiplying the 65-and-older expenditures from the Bureau of Labor Statistics' 2018 Consumer Expenditure Survey by the cost-of-living index for each state from the Missouri Economic Research and Information Center's cost-of-living series for the third quarter of 2019. GOBankingRates divided each state’s annual expenditures -- minus the annual Social Security income, as sourced from the Social Security Administration's Monthly Statistical Snapshot of November 2019 -- by 0.04, assuming that a retired person would draw down their savings by 4% each year to pay for living expenses. All data used to conduct this study was compiled and verified on Dec. 13, 2019.