5 West Coast States Where You’ll Need at Least $1 Million To Retire
Written by
Kristopher Kane
Edited by
Amber Barkley
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
The states that make up the West Coast are known for an abundance of natural beauty and lively urban centers complete with world-class culture, cuisine and more. Many people dream of enjoying their post-work years and living a comfortable life in one of these states.
To turn that daydream into a reality, you’ll need to prioritize savings. Each state presents would-be retirees with diverse and unique living experiences, but these come with significant expenses.
Keep reading for a look at the five West Coast states where retirees will need at least $1 million to comfortably retire, based on annual expenditures, cost-of-living indices and the minimum funds required for both 25 and 30 years of retirement.
Alaska
- Annual expenditures: $73,082
- Cost of living index: 126.4
- Minimum needed for 25 years of retirement: $1,287,880
- Minimum needed for 30 years of retirement: $1,547,003
Alaskan landscapes are known for their rugged beauty, but the cost of untouched wilderness can be expensive. The higher costs of living in Alaska are due to the challenges of importing goods and services to its remote location. While it offers breathtaking views and a unique lifestyle, retirees must be prepared for significant cost of living expenses.
California
- Annual expenditures: $78,864
- Cost of living index: 136.4
- Minimum needed for 25 years of retirement: $1,432,425
- Minimum needed for 30 years of retirement: $1,720,630
The Golden State is home to some of the most beautiful beaches in the world, diverse and vibrant cultures and an economy rivaling that of many countries. This is reflected in a high cost-of-living index of 136.4.
Hawaii
- Annual expenditures: $103,610
- Cost of living index: 179.2
- Minimum needed for 25 years of retirement: $2,051,077
- Minimum needed for 30 years of retirement: $2,463,757
Hawaii has lush landscapes, tranquil beaches with bottle-blue waters and a climate that evokes the phrase “tropical paradise.” Unfortunately, this island idyll comes at a premium. Hawaii’s cost-of-living index is a staggering 179.2, making it one of the most expensive states in which to retire.
Oregon
- Annual expenditures: $66,317
- Cost of living index: 114.7
- Minimum needed for 25 years of retirement: $1,118,762
- Minimum needed for 30 years of retirement: $1,343,858
If Oregon’s lush forests and vibrant culture aren’t enough of a draw, the state also offers retirees a relatively more affordable cost of living. While it still requires prudent financial planning, the prospect is slightly less daunting than some of the other states on this list.
Washington
- Annual expenditures: $66,895
- Cost of living index: 115.7
- Minimum needed for 25 years of retirement: $1,133,217
- Minimum needed for 30 years of retirement: $1,361,221
Retiring in Washington state offers access to the cultural amenities of cities like Seattle nestled in some of the most majestic landscapes in the world. While it’s a bargain compared to Hawaii, living in so much natural beauty is still a bit pricey.
Methodology: In order to find out exactly how much you need to retire in each state, GOBankingRates found the annual cost of expenditures for a retired person in each state by multiplying the 65 year and older expenditures, sourced from the Bureau of Labor Statistics’ 2022 Consumer Expenditure Survey, by the cost-of-living index for each state, sourced from the Missouri Economic Research and Information Center’s Q3 2023 cost of living series. To find how much money a retired person would need to save, we divided each state’s annual expenditures, minus the annual Social Security income as sourced from the Social Security Administration’s Monthly Statistical Snapshot, March 2022, by 0.0333%, 0.04% and 0.05% — assuming 20, 25 and 30 years of retirement, respectively. All data was collected on and is up to date as of Jan. 8, 2024.
More From GOBankingRates
