How Much Money You Need To Retire In Every U.S. State

To estimate the savings needed for a comfortable 25-year retirement, our team used the Missouri Economic Research and Information Center’s 2025 Q1 cost-of-living index, the Social Security Administration’s OASDI report, and the U.S. Census Bureau’s Consumer Expenditure Survey. We adjusted average retiree spending by each state’s cost of living, subtracted average Social Security benefits, and applied the 4% rule to calculate the savings needed to close the gap.

States Where You Need The Least Savings To Retire

Looking for the perfect place to settle down in retirement? States with a low cost of living index, and high social security payouts are some of the best options. The Midwest and South are overrepresented among the top 15, highlighting increased affordability away from coastal areas. Below are the top 35 states where you can retire comfortably with less than $1M in the bank.

1. Oklahoma

• Annual cost of living: $51,374
• Savings you need to retire: $729,145

2. Michigan

• Annual cost of living: $53,958
• Savings you need to retire: $752,483

3. Kansas

• Annual cost of living: $53,898
• Savings you need to retire: $754,906

4. Missouri

• Annual cost of living: $52,877
• Savings you need to retire: $761,753

5. Alabama

• Annual cost of living: $52,636
• Savings you need to retire: $761,856

6. Iowa

• Annual cost of living: $53,838
• Savings you need to retire: $771,121

7. Indiana

• Annual cost of living: $54,559
• Savings you need to retire: $775,348

8. Mississippi

• Annual cost of living: $52,456
• Savings you need to retire: $784,235

9. Tennessee

• Annual cost of living: $54,078
• Savings you need to retire: $786,756

10. West Virginia

• Annual cost of living: $53,237
• Savings you need to retire: $788,891

11. Minnesota

• Annual cost of living: $56,302
• Savings you need to retire: $805,404

12. Nebraska

• Annual cost of living: $55,520
• Savings you need to retire: $809,482

13. North Dakota

• Annual cost of living: $54,559
• Savings you need to retire: $811,083

14. Georgia

• Annual cost of living: $55,100
• Savings you need to retire: $819,851

15. Arkansas

• Annual cost of living: $54,379
• Savings you need to retire: $824,070

16. Texas

• Annual cost of living: $55,160
• Savings you need to retire: $827,734

17. Kentucky

• Annual cost of living: $55,100
• Savings you need to retire: $841,364

18. South Carolina

• Annual cost of living: $56,842
• Savings you need to retire: $843,318

19. Illinois

• Annual cost of living: $56,902
• Savings you need to retire: $846,185

20. Wyoming

• Annual cost of living: $58,284
• Savings you need to retire: $872,739

21. Ohio

• Annual cost of living: $57,143
• Savings you need to retire: $875,468

22. Pennsylvania

• Annual cost of living: $58,585
• Savings you need to retire: $875,513

23. Louisiana

• Annual cost of living: $56,001
• Savings you need to retire: $879,300

24. New Mexico

• Annual cost of living: $56,602
• Savings you need to retire: $879,848

25. North Carolina

• Annual cost of living: $58,765
• Savings you need to retire: $896,197

26. Montana

• Annual cost of living: $57,924
• Savings you need to retire: $903,737

27. Wisconsin

• Annual cost of living: $59,787
• Savings you need to retire: $907,691

28. South Dakota

• Annual cost of living: $58,465
• Savings you need to retire: $909,334

29. Utah

• Annual cost of living: $60,387
• Savings you need to retire: $918,804

30. Delaware

• Annual cost of living: $62,190
• Savings you need to retire: $929,202

31. Virginia

• Annual cost of living: $60,928
• Savings you need to retire: $932,029

32. Nevada

• Annual cost of living: $59,787
• Savings you need to retire: $941,636

33. Florida

• Annual cost of living: $61,289
• Savings you need to retire: $967,576

34. Idaho

• Annual cost of living: $61,289
• Savings you need to retire: $970,515

35. Colorado

• Annual cost of living: $62,490
• Savings you need to retire: $979,100

States Where You Need The Most Savings To Retire

West Coast and Atlantic Coast states are some of the most expensive to retire in, accounting for 13 of the top 15. While these states may offer some perks to retirees, residents will also have to contend with the high cost of living. Here are the states where you need more than $1M in savings to retire comfortably.

1. Hawaii

• Annual cost of living: $109,539
• Savings you need to retire: $2,169,896

2. Massachusetts

• Annual cost of living: $87,186
• Savings you need to retire: $1,585,705

3. California

• Annual cost of living: $85,083
• Savings you need to retire: $1,576,678

4. Alaska

• Annual cost of living: $76,491
• Savings you need to retire: $1,362,126

5. New York

• Annual cost of living: $74,928
• Savings you need to retire: $1,296,494

6. Maine

• Annual cost of living: $68,139
• Savings you need to retire: $1,161,722

7. Vermont

• Annual cost of living: $68,319
• Savings you need to retire: $1,123,251

8. Oregon

• Annual cost of living: $67,718
• Savings you need to retire: $1,119,995

9. Maryland

• Annual cost of living: $69,040
• Savings you need to retire: $1,114,225

10. Arizona

• Annual cost of living: $67,598
• Savings you need to retire: $1,108,264

11. New Jersey

• Annual cost of living: $68,980
• Savings you need to retire: $1,098,113

12. Washington

• Annual cost of living: $67,297
• Savings you need to retire: $1,081,292

13. Connecticut

• Annual cost of living: $68,199
• Savings you need to retire: $1,075,095

14. Rhode Island

• Annual cost of living: $65,675
• Savings you need to retire: $1,052,759

15. New Hampshire

• Annual cost of living: $66,156
• Savings you need to retire: $1,027,632

Tips On Saving For Retirement 

Whether you need help saving for a coastal retirement or want to set yourself up for success in your home state, there are ways you can build your nest egg and protect your future. Here are some practical tips to help you stay on track.

1. Start early and stay consistent 

You’ve probably heard it before, but the earlier you start saving, the more time you have to accumulate money through compound interest. Even $10 added here and there can add up over a few decades. Set up an automatic transfer to a safe savings account so you can make regular contributions.

2. Maximize retirement accounts

If you have a retirement savings account — 401(k)s, IRAs, or Roth IRAs — through your work or some other program, you should contribute as much as possible. For example, if your employer offers a 401(k) match, they’ll contribute an amount based on your contribution — it’s essentially free money.

3. Consider a Gold IRA

Inflation is often a massive headache for retirees, but diversifying your investments can protect your wealth from the volatile market. For instance, adding precious metals to your portfolio with a gold IRA account can be an excellent hedge against inflation, as gold consistently stays valuable.

4. Keep an emergency fund

Having a separate emergency fund, primarily stored in a high-yield savings account, prevents you from having to use your retirement savings when unexpected expenses arise. Aim to hold at least three to six months of living expenses in this account.

5. Prepare for health insurance costs

Healthcare is one of the biggest expenses for retirees, so setting up an affordable insurance plan can help you save long-term. Research state and local programs like Medicaid or Medicare Advantage, or compare and contrast private long-term care insurance plans. Good insurance will help prevent having to dig into your savings accounts to pay for healthcare costs.

6. Open a Health Savings Account (HSA)

Health Savings Accounts (HSAs) can help you save for retirement through tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. Any unused funds roll over indefinitely, making HSAs an excellent way to plan for rising healthcare costs later in life.

7. Pay off high-interest debt

Debt can drain your retirement savings, so entering your golden years debt-free is essential for stretching your savings further. Pay off debt faster by prioritizing high-interest loans and credit card payments.

8. Downsize or relocate wisely

As mentioned, every state and local region has its own unique cost of living. Consider moving to a state with a lower cost of living or downsizing to reduce housing costs, taxes, and maintenance expenses.

9. Delay social security benefits

While not always possible, if you can wait until age 70 to claim your social security benefits, you can receive the maximum benefit and increase your monthly payments.

10. Speak to a financial advisor

When saving for retirement starts to feel overwhelming, reaching out to a financial advisor can help. The best financial advisors can help you research saving account options, build a plan, correctly invest/withdraw, and adjust your savings strategy over time in accordance with the market. 

Retirement Savings Needed by State: Full Breakdown

The table below ranks the retirement savings needed in all 50 states based on average Social Security benefits and annual spending adjusted for cost of living. We measured these variables and then calculated the amount you might need to pull from your savings each year. States with a larger gap are generally less affordable.

Methodology  

To calculate the estimated savings needed to retire comfortably in each state, the Retirement Living Research Team analyzed multiple financial and demographic factors using the 4% withdrawal rule and three key data sources:

• Missouri Economic Research and Information Center’s 2025 Q1 cost-of-living index
  
• Social Security Administration’s OASDI Beneficiaries by State and County report
  
• U.S. Census Bureau’s Consumer Expenditure Survey

We adjusted the national average annual spending for retirees using each state’s cost-of-living index. Then we calculated each state’s average Social Security benefit and subtracted it from the adjusted spending figure to determine how much retirees need to cover with their savings. Finally, we divided that gap by 0.04 (per the 4% rule) to estimate the total savings required.

Reference Policy

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Article Sources

¹“Consumer Expenditures – 2023, Reference Person Age Splits.” Bureau of Labor Statistics. Evaluated July 21, 2025.

²“Cost of Living Data Series.” Missouri Economic Research and Information Center. Evaluated July 21, 2025.

³“OASDI Beneficiaries by State and County, 2023.” Social Security Administration. Evaluated July 21, 2025.