How Much Money You Need To Retire In Every State In America

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how-much-money-you-need-to-retire-by-state

Retirement can be stressful to think about. But understanding the amount of money needed to retire is half the battle. And while everyone has a different idea of what their retirement will look like (and a different freedom number), there is a bare minimum amount of money needed to retire in every state in America. The data below, which was pulled together by GoBankingRates via a survey, might come as a bit of a shock to some people. The shock might come from both high earners and those earning a lower income. We’ve also included the median household income for each state, based on 2020 Census data, to give a bigger picture of what average household earnings look like in that state.The good news is, for those who aren’t high-income earners or planning to have several million in net worth by retirement, the vast majority of states require less than $1 million in savings to retire. Shocking, right?

How Much Savings You Need To Retire In Every State In America

Alabama

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In Alabama, the median cost of living per household is about $52,035 according to 2020 U.S. Census data. You’ll need at least $599,453 in savings to retire comfortably in Alabama, where the average cost of living is $42,154.99 per year.

Alaska

how-much-money-you-need-to-retire-by-state

According to U.S. Census data, the median household income in Alaska is $77,790. The average annual cost of living in Alaska is around $59,806.80, meaning retirees on average will need to stash away $1,040,748 for retirement, according to GoBankingRate’s calculations.

Arizona

Arizona is a common haven for retirees, drawn to its dry, sunny desert weather, plentiful golf courses, lower cost of living, and idyllic southwestern scenery. Additionally, Arizona’s tax laws are friendly to retirees. According to 2020 U.S. Census data, the median household income is $61,529. The cost of living calculations for Arizona are around $50,909.53 per year, on average – significantly less than neighboring California – and require about $818,316, on average, for retirement.

Arkansas

arkansas minimum wage

With an average cost of living around $43,820.26 a year, you’ll need $641,084 in savings, on average, to retire in Arkansas.

California

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California’s famous sunshine and temperate climate come at a premium. If you want to enjoy your golden years in the Golden State, don’t be surprised by the state’s notoriously high costs of living. According to 2020 U.S. Census data, the median household income in California is $78,672. The average cost of living is $69,893.55 – the second most expensive cost of living in the country after Hawaii. More expensive cost of living means more needed to retire. GoBankingRates cites $1,292,917 needed to comfortably retire in California, on average.

Colorado

Outdoor enthusiasts love Colorado for its plethora of year-round activities, from skiing to golf. The median household income in the Centennial State is $75,231, according to 2020 U.S. Census data, with an average cost of living around $50,338.58 per year. To retire comfortably near those beautiful Rocky Mountains, you’ll need to save about $804,043 for retirement, according to GoBankingRates.

Connecticut

Connecticut minimum wage

Connecticut’s median household income comes out to about $79,855 per year, according to the most recent U.S. Census data. Like other states in the northeast, there’s a higher cost of living: Estimated at around $56,856.91 per year. The savings suggested for retiring in Connecticut is $967,001, according to GoBankingRates data.

Delaware

Delaware minimum wage

With its low taxes and affordable housing options for a state in the northeast, Delaware is an ideal destination for retirees who are looking to stretch their savings. The median household income in Delaware is $69,110, according to U.S. Census data. According to a recent study by GoBankingRates, the average retired household in Delaware spends about $50,719.21 per year, which means you’ll need about $813,558 saved for retirement in the First State.

Florida

For many people, retirement is a time to enjoy the fruits of their labor and relax in a warm climate. Florida is a popular destination for retirees for a number of reasons. First, the state has no personal income tax, which can be significant savings for retirees on a fixed income. In addition, Florida offers a wide range of activities and amenities that appeal to retirees, from golf and tennis to beaches and boating. And with an average temperature of around 74 degrees (read: no more shoveling snow), it’s easy to see why so many people choose to spend their golden years in the Sunshine State. Whether you’re looking for tax savings or sunny weather, Florida is an ideal destination for retirement. The median household income in Florida is $57,703, according to the most recent figures. The annual cost of living in Florida averages around $46,675, requiring about $712,453 on average to live comfortably in retirement savings.

Georgia

 

Have Georgia on your mind for retirement? It would require about $737,976 in savings, according to GoBankingRates data. Like other states in the southeast, it has a lower cost of living, with annual costs of around $42,725.94 a year. The suggested amount needed to retire in Georgia is $613,727, according to the most recent suggested figures.

Hawaii

 

Hawaii wins the award for the most expensive state to retire in America.¬† A true honor, no doubt! When it comes to retiring in Hawaii, there is no one-size-fits-all answer. The cost of living in the state is relatively high, so retirees need to have a good sense of their budget before making the move. That said, there are plenty of ways to save money on retirement costs in Hawaii – like using the islands’ wonderful public transportation system. The median household income is one of the highest in the United States: $83,173. The annual cost of living in Hawaii is a staggering $88,306.62. That’s going to cost a pretty penny to retire comfortably – an estimated $1,753,244.

Idaho

 

Idaho is a beautiful state with a lot to offer retirees. The state has a low cost of living, and many retirees choose to live here because of the affordable housing. Idaho is also home to a number of great golf courses, and the state’s parks and recreation areas are perfect for exploring. The median household income in Idaho is $44,951. The annual cost of living in Idago is a modest $46,199.21, requiring an estimated $700,558 in savings for retirement.

Illinois

Illinois

 

The median household income in Illinois is $68,428. Like other states in the midwest, the annual cost of living in the Land of Lincoln, on average, is an affordable $43,059, with an estimated $622,053 needed in retirement savings.

Indiana

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The median household income in Illinois is $58,235. The annual cost of living is an estimated¬†$43,344.47. If you want to retire in Indiana, you’ll need about $629,190 in savings to live comfortably.

Iowa

Iowa minimum wage

 

Iowa is a great place to retire. With its low cost of living, abundant natural beauty, and friendly Midwestern hospitality, it’s no wonder that Iowa is consistently ranked as one of the best states for retirees. The median household income in Iowa is $61,836. The annualized cost of living in Iowa is an estimated $42,963.84. If you want to retire in Iowa, you’ll need about $619,674 in savings to live comfortably.

Kansas

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The second cheapest state on this list, with an estimated retirement savings number under $600,000. There’s no place calling Kansas home in retirement. The median household income in Kansas is $61,091. The annualized cost of living in Kansas is an estimated $41,346.15. If you want to retire in Kansas, you’ll need about $579,232 in savings to live comfortably.

Kentucky

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With its low cost of living and high quality of life, it’s no wonder that Kentucky is becoming a more and more popular state for retirees. In 2020, the median household income in Kentucky was $56,525. The annual cost of living in the state, on average, is $44,676.68. Retirees should plan to have $662,495 saved if they want to retire comfortably in Kentucky.

Louisiana

 

Leave your heart in Louisiana? Louisiana is a great place to retire. It has a low cost of living, mild winters, and plenty of things to do. There are also many retirement communities that offer amenities like swimming pools, golf courses, and clubhouse facilities. Louisiana is a great state for retirees who want to enjoy their golden years without breaking the bank. The media household income in Louisiana is $50,800. The annual cost of living is $44,153.31 in the state. Retirees should plan on setting aside at least $649,411, on average, to retire in Louisiana.

Maine

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Not looking to part with the four seasons – especially winter – in retirement? Maine is a beautiful state with plenty to offer retirees. The coastline is dotted with quaint towns and fishing villages, and the interior is home to forests, mountains and lakes. Maine is also known for its excellent healthcare and top-ranked colleges and universities, offering an abundance of enriching activities. The median household income in Maine is $59,489. The annual cost of living in Maine is $52,765.11, requiring at least an average of $864,706 in savings for retirement, according to GoBankingRates.

Maryland

 

Maryland offers a variety of options for retirees, from bustling cities to sleepy small towns. Its convenient location on the East Coast makes Maryland within easy reach of major metropolitan areas like Washington, D.C., Philadelphia, and New York City. Like other states in the northeast, Maryland’s median household income tilts higher: $87,063, according to 2020 U.S. Census data. The annual cost of living in Maryland is a little lower than other states in the northeast, however, at about $57,760.91, with retirees needing about $989,601 in estimated savings for retirement.

Massachusetts

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The median household income in Massachusetts is $84,385. Like other states in northeast, the annual cost of living in the state is on the higher side – around $63,042.18, according to GoBankingRates data. As a result, you need about $1,121,632 to retire in Massachusetts.

Michigan

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Winters in Michigan can be harsh, but summers can be mild, pleasant, and rewarding. The median household income in Michigan is $63,829. The annual cost of living in Michigan is a modest $43,487.21. You need about $632,758 to retire comfortably in Michigan.

Minnesota

Minneapolis, Minnesota

 

Like Michigan, winters in Minnesota can also be harsh, but summers in the Land of 10,000 Lakes can be enjoyable. The median household income in Minnesota is $73,382. The annual cost of living in Minnesota is an affordable $47,388.68. You need about $730,295 to retire comfortably in Minnesota, according to GoBankingRates survey data.

Mississippi

Mississippi minimum wage

 

In terms of retirement savings needed, Mississippi is the cheapest state on this list. Like other states in the south, Mississippi is known for its cheaper cost of living. On average, the annual cost of living in Mississippi is $40,489.73, with a median household income of $46,511. It’s one of the few states on the list requiring less than $600,000 in savings for retirement. On average, you’ll need about $557,821 to retire in Mississippi and live comfortably.

Missouri

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Missouri offers a wide variety of retirement options, from majestic mountains to peaceful prairies. Whether you’re looking for an active community or a quiet place to retire, Missouri has something for everyone. In the Ozarks, you’ll find picturesque towns nestled in the foothills. The region is known for its outdoorsy lifestyle, with plenty of opportunities for hiking, fishing, and camping. Meanwhile, the Kansas City area offers a more urban environment, with a vibrant arts scene and regional cuisine like BBQ. Missouri also boasts a modest cost of living and median household income. The median household income in Missouri is $57,290. On average, the annual cost of living in Missouri is $43,392.05, requiring $630,379 in savings for retirement.

Montana

 

Retirement in Montana offers plenty of opportunities to stay active and enjoy the great outdoors. With its towering mountains, pristine lakes, and endless stretches of forest, Montana is a paradise for outdoor enthusiasts. And with a growing number of retirees, it’s becoming an increasingly popular destination for those looking to enjoy their golden years. Whether you’re interested in fishing, hiking, or just taking in the stunning natural scenery, Montana has something to offer. The median household income in Montana is $54,970. The annual cost of living is the state is $47,959.63, requiring a nest egg of about $744,569 to retire comfortably.

Nebraska

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Like other midwestern states, Nebraska is known for friendly folks and a lower cost of living. It’s one of the states on the list requiring retirement savings under $700,00; About $658,927 is needed to retire comfortably in Nebraska. The median household income in Nebraska is $63,229, according to U.S. Census data, with an annual cost of living around $44,533.94.

Nevada

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In recent years, Nevada has become a more and more popular retirement option for California individuals seeking a more affordable retirement options with a high quality of life. The state is known for its beautiful scenery and moderate climate, and it boasts a wide variety of activities and attractions. In addition, Nevada has no state income tax, making it an attractive destination for retirees who are looking to stretch their retirement savings. And with a large concentration of seniors living in the state, retirees will find plenty of opportunities to interact with others and stay active. The median household income in Nevada is $62,043, with an annual cost of living of about $49,149.11. You need about $774,306 in savings to retire comfortably in Nevada, according to GoBankingRates data.

New Hampshire

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The median household income in New Hampshire is $77,933, which is higher than the median annual income of $65,712 on average across the United States. The annual cost of living in New Hampshire is $53,573.95, requiring an estimated $884,927 in retirement savings.

New Jersey

New Jersey minimum wage

 

New Jersey is famously home to the highest ratio of millionaire households per capita of all the states in the United States. The affluence in the state makes the median household income one of the highest in the country at $85,245. The annual cost of living in New Jersey is $56,285.96, requiring an estimated $952,727 in retirement savings.

New Mexico

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For many people, the idea of retirement evokes images of warm beaches and palm trees. However, for those who love adventure, retirement in New Mexico offers a unique opportunity to explore the American Southwest. With its wide-open spaces and diverse landscapes, New Mexico is a veritable playground for retirees. hiking, bicycling, and horseback riding are just a few of the outdoor activities that can be enjoyed in New Mexico. The state also boasts a rich cultural heritage. In addition, New Mexico is home to a number of world-class museums and art galleries. As a result, retirees in New Mexico can enjoy an active lifestyle while also having access to a wealth of cultural amenities. The median household income in New Mexico is $51,243. The annual cost of living in New Mexico is $43,106.57, requiring an estimated $623,242 in retirement savings.

New York

Lower Manhattan, New York

 

Like California, New York ain’t cheap. While the average cost of living in parts of New York State is significantly less than it is in New York City, the median household income is still $67,046. The average annual cost of living is $68,371.02. This means you’re going to need a pretty big nest egg if you want to retire in the Empire State: $1,254,854 in savings to retire comfortably, making it the third most expensive state to retire in on this list.

North Carolina

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North Carolina offers retirees a unique combination of scenic beauty, temperate weather, and southern hospitality. From the Appalachian Mountains to the Outer Banks, the state boasts a wide variety of landscapes to explore. And with an average temperature of 70 degrees, it’s an ideal place to enjoy retirement. North Carolina is also home to a number of top-rated golf courses, making it a paradise for golf enthusiasts. In addition, the state’s relaxed pace of life and friendly people make it a great place to settle down and enjoy retirement. It’s also relatively affordable compared to its northern neighbors: The median household income is $56,642, as of 2020. The annual cost of living, on average, is $45,866.16, requiring an estimated $692,232 for a comfortable retirement.

North Dakota

Minimum Wage By State North Dakota

 

The median household income in Ohio is $65,315. The annual cost of living in the state is $46,532.26. If you’re planning on retiring to North Dakota, you’ll need $708,885 saved for retirement.

Ohio

Ohio minimum wage

 

Like other Midwest states, the cost of living in Ohio is relatively affordable compared to the West Coast and Northeast. The median household income in Ohio is $58,116. The annual cost of living in the state is 44,200.89, according to survey data from GoBankingRates. In order to retire comfortably in Ohio, this will require savings of about $650,600.

Oklahoma

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Oklahoma is the third most affordable state on this list, right after Mississippi and Kansas. It also boasts a retirement savings number under $600,000 – $594,695, according to GoBankingRates. Oklahoma’s median household income is $53,840, with an annualized cost of living costs of around $41,964.68, according to survey data estimates.

Oregon

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The median household income in Oregon, as of 2020, is $62,818. The cost of living in Oregon, however, is in the top 5 most expensive states on this list, with a reported annual cost of living of around $60,663.23. If you want to retire comfortably in Oregon, you’ll need to set aside $1,062,159 in retirement savings, making it one of six states where $1m+ in savings is needed.

Pennsylvania

 

Plan on staying in the Northeast for retirement? Pennsylvania offers retirees a wide array of choices when it comes to finding the perfect place to settle down. The median household income in the state is $63,627, according to U.S. Census data. From the bustling metropolis of Philadelphia to the slower-paced atmosphere of the Pocono Mountains and points west, there is something for everyone. The state has over 120 golf courses, along with world-class museums and cultural attractions, making it a great place to stay active and engaged in retirement. In addition, Pennsylvania boasts a lower cost of living than many other states (annual cost of living: $47,816.90), making it an attractive option for retirees on a fixed income. And with no state sales tax on clothes or food, retirees can stretch their budgets even further. You’ll need $741,000 to retire comfortably in Pennsylvania. Whether you’re looking for an active retirement community or a quiet place to enjoy your golden years, Pennsylvania is worth considering.

Rhode Island

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Rhode Island is located near a number of major cities, making it easy to stay connected with friends and family. The median household income in Rhode Island is $70,305. Like other states in the Northeast, the cost of living is higher, coming out to about $55,096.48 on average. This means that you’ll need about $922,990 to retire in Rhode Island, on average.

South Carolina

 

South Carolina offers a variety of retirement options for those looking to enjoy their golden years in the Palmetto State. From the historic city of Charleston to the sunny beaches of Hilton Head, there is something for everyone in South Carolina. In addition, the state offers a number of tax breaks for retirees, making it an attractive destination for those on a fixed income. The state’s median household income is $54,864, according to 2020 U.S. Census data. South Carolina’s annual cost of living is $45,104.89, with an estimated $673,200 in savings required for retirement in the state.

South Dakota

Badlands National Park, South Dakota, USA

 

The median household income in South Dakota is $59,896. If you’re looking to settle down in South Dakota in retirement, expect your annual cost of living expenses to average around $45,771. Retirees in South Dakota require $689,853 in retirement savings.

Tennessee

Tennessee

 

Tennessee has become an increasingly popular place to retire. The weather is mild, relatively speaking to the extreme heat of Florida and Arizona, and there are plenty of outdoor activities to enjoy. Known for its beautiful Smoky Mountains and vibrant music scene in Nashville and Memphis, the cost of living is low and there are no state income taxes. The median household income in Tennessee is $54,833. Nashville and other cities have grown in popularity in recent years, driving the cost of living up in those areas. But state-wide, retirees can expect the annual cost of living expenses at $42,821.10, according to the GoBankingRates data. According to the same survey, this would require $616,106 in retirement savings for retirement in Tennessee.

Texas

 

Retirement in Texas has a lot to offer retirees. The state has no income tax, which means that retirees can keep more of their hard-earned money. Additionally, Texas has a lower cost of living than many other states, making it a more affordable place to live. There are also plenty of things to do in Texas, from exploring the state’s many parks and lakes to visiting its vibrant cities. The median household income is $63,826. Retirees can expect a cost of living, on average, around $44,058.15. The amount needed to retire in Texas, according to GoBankingRates, is $647,032.

Utah

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Retiring in Utah has plenty of perks. For starters, the Beehive State is home to some of the most breathtaking scenery in the country. From the red cliffs of Zion National Park to the snow-capped peaks of the Wasatch Range, there’s no shortage of natural beauty to explore. It’s also relatively affordable compared to other western states. The median household income is $74,197 in Utah, while the average annual cost of living is $48,292.69. The amount needed to retire in Utah is $752,895 for a comfortable retirement.

Vermont

Vermont

 

Looking to settle down in the quiet in retirement? With its picturesque scenery, ample outdoor recreation opportunities, and friendly locals, it’s easy to see why Vermont is such a popular choice for retirees. And while it may be best known for its winter sports, the Green Mountain State is also a great place to enjoy all four seasons. In the spring, Vermont’s hills come alive with wildflowers; in the summer, there’s no better place to escape the heat than by cooling off in one of the state’s many lakes; in the fall, the forests come alive with brilliant colors. The median household income in Vermont is $61,973. The annual cost of living is $54,620.69. Retirees need $911,095 in savings if they plan on retiring in Vermont.

Virginia

 

Virginia offers a wealth of opportunities for retirees. With its mild climate and scenic beauty, the state is a popular destination for those looking to enjoy their golden years. Virginia also boasts a low cost of living and a high quality of life. In addition, the state offers a number of tax breaks for retirees, making it an attractive option for those on a fixed income. The median household income in Virginia is $74,222. The annual cost of living in Virginia is $48,292.69. If you want to retire in Virginia, you should plan on saving $752,895 to retire comfortably.

Washington

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If you’re looking for a retirement destination that offers plenty of outdoor activities, mild weather, and cultural attractions, you may want to consider moving to Washington state. Washington boasts a diverse landscape, from the forests of the Cascade Mountains to the beaches of the Pacific Coast. And with an average temperature of around 70 degrees, it’s a great place to enjoy all four seasons. The median household income in Washington is $73,775. The annual cost of living in Washington is $53,669.11. If you want to retire comfortably in Washington, you should plan on having $887,306 in savings.

West Virginia

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West Virginia’s median household income is one of the lowest on this list (after Mississippi) at $46,711, according to 2020 Census data. The annual cost of living in West Virginia is also low, at $42,868.68. According to GoBankRates, retiring comfortably in West Virginia requires $617,295 in savings.

Wisconsin

Wisconsin minimum wage

 

Wisconsin’s median household income is $61,747, according to 2020 Census data. The annual cost of living in Wisconsin is $45,437.95. According to GoBankRates, comfortably retiring in Wisconsin requires $681,527 in retirement savings.

Wyoming

wyoming minimum wage

 

Wyoming is known for its wide-open spaces and its beautiful scenery, making it a great place to retire. The state has no personal income tax and no sales tax, which means that your retirement income will go further in Wyoming than in other states. The annual cost of living in Wyoming is $44,533.94. If you’re planning on retiring to Wyoming, you’ll need $658,927 in savings for a comfortable retirement.

Author
C. James

C. James is the managing editor at Wealth Gang. He has a degree in finance and a passion for creating passive income streams and wealth management.