How Much Money You Need to Retire at 65 in Every U.S. State
How Much Money You Need to Retire at 65 in Every U.S. State
Retirement isn’t a one-size-fits-all number. Where you choose to live can dramatically change how much money you need to stop working comfortably at age 65.
A recent analysis from GOBankingRates, based on federal cost data, shows that the minimum savings required for retirement can vary by more than $1.4 million depending on the state. The difference comes down to everyday expenses like housing, groceries, healthcare, utilities, and transportation.
At the high end, retirees in Hawaii need more than $2.19 million to cover basic living costs. At the low end, Oklahoma retirees need about $735,000 less than one-third of Hawaii’s estimate.
How These Retirement Numbers Were Calculated
The estimates are built using reliable, publicly available data:
- Cost data source: U.S. Bureau of Labor Statistics
- Population analyzed: Adults age 65 and older
- Time horizon: 25 years of retirement
- Income adjustment: Average Social Security benefits were subtracted
- Withdrawal strategy: 4% annual withdrawal rate
It’s important to note that these figures represent a baseline. They only cover essential expenses and do not include discretionary spending such as travel, dining out, hobbies, or major lifestyle upgrades.
The Biggest Driver of Retirement Costs: Housing
Housing is the single largest factor affecting retirement budgets. According to the analysis, annual housing costs can differ by as much as $30,000 between states.
Other expenses like utilities and healthcare also vary, sometimes by up to $5,000 per year, which can significantly affect long-term savings needs.
States With the Highest Retirement Savings Requirements
These states are the most expensive places to retire based on essential living costs:
- Hawaii: $2,198,902
- Massachusetts: $1,755,055
- California: $1,538,508
- New York: $1,383,392
- Alaska: $1,400,286
High housing prices, healthcare costs, and utilities push retirement budgets much higher in these locations.
States Where Retirement Is More Affordable
On the other end of the spectrum, these states require the least savings to retire at 65:
- Oklahoma: $735,284
- Mississippi: $752,178
- Alabama: $789,037
- West Virginia: $792,109
- Kansas: $804,395
Lower housing costs and overall living expenses help keep retirement budgets manageable.
Minimum Savings Needed to Retire at 65 by State
(Essential living costs only; excludes discretionary spending)
Alabama: $789,037
Alaska: $1,400,286
Arizona: $1,110,019
Arkansas: $810,538
California: $1,538,508
Colorado: $1,016,336
Connecticut: $1,191,417
Delaware: $1,017,871
Florida: $967,190
Georgia: $848,933
Hawaii: $2,198,902
Idaho: $959,511
Illinois: $911,901
Indiana: $830,504
Iowa: $825,896
Kansas: $804,395
Kentucky: $850,469
Louisiana: $862,756
Maine: $1,192,953
Maryland: $1,265,135
Massachusetts: $1,755,055
Michigan: $893,472
Minnesota: $885,793
Mississippi: $752,178
Missouri: $805,931
Montana: $1,125,377
Nebraska: $845,862
Nevada: $953,368
New Hampshire: $1,116,163
New Jersey: $1,199,096
New Mexico: $859,684
New York: $1,383,392
North Carolina: $934,938
North Dakota: $841,254
Ohio: $864,291
Oklahoma: $735,284
Oregon: $1,156,093
Pennsylvania: $930,331
Rhode Island: $1,180,666
South Carolina: $859,684
South Dakota: $848,933
Tennessee: $825,896
Texas: $833,575
Utah: $961,047
Vermont: $1,185,274
Virginia: $976,405
Washington: $1,188,345
West Virginia: $792,109
Wisconsin: $939,546
Wyoming: $902,686
What This Means for Retirement Planning
These numbers highlight an important reality: retirement planning must be location-specific. Moving to a lower-cost state could reduce required savings by hundreds of thousands of dollars.
However, affordability isn’t everything. Access to healthcare, proximity to family, climate, and quality of life also matter and may justify higher costs for some retirees.
Final Thoughts
This data offers a helpful starting point, but retirement planning should always be personalized. Inflation, market returns, health changes, and personal lifestyle choices can all affect how much you truly need.
If anything, the takeaway is clear: where you retire may matter just as much as how much you save.
Disclaimer
This article is for informational and educational purposes only and does not constitute financial advice. Retirement needs vary based on individual circumstances. Consult a qualified financial advisor before making retirement or investment decisions.
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